Income Tax Coursework Example | Topics and Well Written Essays - 2000 words

Income Tax - Coursework Example 2. Wages and salaries was composed of: †¨Salary taken by Ronni,  £25,000 †¨Wages paid to Bryn (Ronni’s father) for work done to repair bicycles, at a rate of  £20 per hour (30 hrs x 48 weeks) =  £28,800 †¨Wages paid to assistant bicycle repairer at a rate of  £15 per hour (30 hrs x 48 weeks) =  £21,600 †¨Casual help in shop,  £5,400 †¨Ã¢â‚¬ ¨ 4. Repairs and renewals was composed of: †¨Repairs to warehouse floor  £850 †¨Repairs to flat above shop  £750 †¨Cleaning materials  £300 †¨Cleaning contract for shop and workshop †¨Ã‚ £500 †¨Sundry small items  £250 †¨Ã¢â‚¬ ¨Ã¢â‚¬ ¨Ã¢â‚¬ ¨ 5. Motor Expenses mainly for the cost of running Ronni’s estate car used for collecting/delivering broken/mended bicycles and for transporting items for the shop from the cash and carry outlet. Private use of the car had been agreed at 30%. †¨Diesel fuel, car  £8500 †¨Insurance for car  £1200 †¨Repairs, car  £350 †¨Road fund tax, car  £375 †¨Rental of van  £600 †¨Ã¢â‚¬ ¨ 7. Sundry expenses of were composed of: †¨Subscription to magazine, ‘Cycling Today’ †¨Ã‚ £100 †¨Subscription to Green party  £50 †¨Subscription to ‘New Transport Systems’ †¨Ã‚ £24 †¨Sponsorship of local junior school cycling proficiency awards  £50 †¨Donation to Green party  £25 †¨Donation to local hospital A&E department (Ronni had an accident and broke her arm)  £100 †¨Ã¢â‚¬ ¨Postage, stationery and telephone expenses  £100 †¨Ã¢â‚¬ ¨Accountancy charges  £80 †¨Sundry other items  £100†¨Ã¢â‚¬ ¨ Calculate the taxable trading profit for Ronni’s business for the year ended 30 September 2011. †¨You should provide your own data where none is given, ensuring that you retain a taxable trading profit (i.e. not a trading loss) and should ensure that you choose data that will fully demonstrate your knowledge of taxation. Calculate the Income tax payable by Ronni for the tax year 2011/12, providing your own data where none is given, to fully demonstrate your knowledge