UGB225 Business Taxation
a) Linda draws a salary of £200 per week from the business. This is included in thewages and salaries figure.
b) Repairs and renewals are as follows:
Decorating of business premises 400 Installation of new improved heating system 3,800 Minor repair 80 4,280
c) It has been agreed with HMRC that one-quarter of telephone costs and one-fifth of motor expenses relate to private use.
d) Sundry expenses include business entertaining of£520.
e) Trade debts written off in the year amounted to £440 and £200 has been set aside as a general allowance (or provision) for bad and doubtfuldebts
Compute Linda’s trading profit (before deduction of capital allowances) for the year ended 31 March 2020.
Question 2 :
a) Discuss the criteria which can be used to distinguish employment from selfemployment? (19 marks) b) Why do people prefer self-employment rather than being
employed, resulting in so many IR 35 cases?
Question 3 :
a) Discuss the six badges of trade?
b) Briefly discuss the different VAT schemes available to the VAT registeredbusiness?
On 23 August 2013, Peter made a gift of a house valued at £420,000 to his son, John. This was a wedding gift when John got married. The nil rate band for the tax year 2013/14 is £325,000.
a) Calculate the inheritance tax that will be payable as a result of Peter’sdeath.
b) Calculate John’s capital gains tax liability for the tax year2019/20.
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