Friday Five – 27 March – 5 Questions in 5 Minutes

Welcome to this week’s Friday Five – 5 Questions in 5 Minutes Every Friday

What’s this all about?

It’s a bit of Friday Fun where we provide you with 5 questions relevant to a mix of CII exams. The challenge is for you to answer them in 5 minutes. Answers at the bottom of the page.

Questions

These questions relate to examinable tax year 2019/20, examinable until 31 August 2020.

1. If the FCA has suspicions about a firm, can an enforcement officer enter premises and remove original documents from a firm without permission?
   1. Only if the enforcement officer has a warrant to enter premises and take documents by force if necessary
   2. The enforcement officer can only take copies of any documents
   3. The enforcement officer needs a warrant to take documents and would require permission from the firm
   4. The enforcement officer can access documents at the firm’s office but cannot take them away

2. Caroline is one of 4 trustees for the Elliott family trust. She lives in Spain although all the other trustees are UK resident. What is her liability regarding any tax liability arising from the trust?
   1. As she is not the nominated person to deal with HMRC she has no accountability
   2. Caroline would be liable for one quarter of any trust liabilities
   3. Caroline is jointly liable for the full amount of any tax that is due
   4. As Caroline lives in Spain the trust is not liable to UK tax

3. Madeline has made a successful claim for Bereavement Support Payment at the higher rate. This is because she:
   1. has earnings under the primary contribution threshold.
   2. is claiming child benefit for her two children.
   3. has paid National Insurance Contributions at the higher rate for 25 weeks.
   4. is over State pension age and has been UK resident for at least 12 months.

4. Who of the following would be eligible for Statutory Sick Pay?
   1. Philip, employed part-time and not paying any National Insurance contributions
   2. Steven, self-employed and paying Class 2 and Class 4 National Insurance contributions
   3. Brenda, currently on a career break and paying Class 3 National Insurance contributions
   4. Miriam, employed and paying Class 1 National Insurance contributions

5. Company A pays gross interest on loans in 2017 of £1m and has profits before interest and tax of £10m. In 2018, the figures are £1m and £8m respectively. This tells us that interest cover:
   1. has reduced
   2. has risen
   3. is worryingly low
   4. in 2018 is 9 times

Answers

1. A – See R01 Study Text, Chp 5:1
   Grab our taster mock exam paper for CII R01. Click here to download.

2. C – See R03 Study Text, Chp 1
   Grab our taster mock exam paper for CII R03. Click here to download.

3. B – See R04 Study Text, Chp 7
   Grab our taster mock exam paper for CII R04. Click here to download.

4. D – See R05 Study Text, Chp 3
   Grab our taster mock exam paper for CII R05 Click here to download.

5. A – See J10 Study Text, Chp 12
   Grab our taster mock exam paper for CII J10. Click here to download.

How did you find this week’s questions? Did you complete them in 5 minutes? Did you get them all correct? Do you disagree with any?

If you found this quiz useful for your CII exam revision, please do share it with your colleagues.