Question
Calculate the following tax question, using Lymer & Oats:2022/23 Tables of tax rates and allowances. Chatru commenced trading on 1 st November 2016. His fir
Calculate the following tax question, using Lymer & Oats:2022/23 Tables of tax rates and allowances.
Chatru commenced trading on 1st November 2016. His fir accounts were made up to 30th April 2018 and thereafter to 30th April annually. He ceased trading on 31st March 2021. His trading result, adjusted for income tax purposes were:
£
1st November 2016-30th April 2018 40,500
Year ended 30th April 2019 12,000
Year ended 30th April 2020 24,000
Period to 31st March 2021 46,000
Requirements:
a) Calculate the assessable income for all years in question.
b) Calculate whether there would have been an income tax benefit in Chatru continuing to trade one extra month and making up final accounts to his normal accounting date, on the assumption that his tax adjusted profit for April 2021was £4,200.
Step by Step Solution
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Step: 1
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Step: 2
Step: 3
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