can someone please help me?

let me know what other information i can give to help please!!!

UK tax law is needed!

Question 4 Bethany began trading on 1 May 2016 and made up accounts for the year ending 30 April 2017. She then made up accounts annually thereafter. Her results have been as follows: Period 1.5.16 - 30.4.17 1.5.17 - 30.4.18 1.5.18 - 30.4.19 21,000 24,000 27,000 On submission of the accounts to HMRC, the inspector of taxes dealing with Bethany's case asks for further breakdown of the expense accounts relating to entertaining, motor expenses, repairs and employee salary costs. Calculate Bethany's assessments for the first four tax years indicating the overlap created and explain when relief will be obtained for this overlap. Explain to Bethany why the inspector is requesting further information. (maximum word count 200 words) (10 marks) Tax Rates and Allowances 2019/20 Income Tax Main Personal Allowances Personal allowance Income limit for personal allowance (Note 1) Marriage allowance (Note 2) 12,500 100,000 1,250 Note 1: When income exceeds the limit a clawback applies reducing the personal allowance by 1 for every 2 above the limit. Note 2: Spouses/civil partners are able to transfer 1,250 of their unused personal allowance to their partner if both are basic rate taxpayers. Tax Rates and Taxable Bands / Normal rate Dividend rate 20% 7.5% Basic rate O - 37,500 Higher rate 37,501 - 150,000 40% 32.5% Additional rate Over 150,000 45% 38.1% Note 3. A personal savings allowance applies at a 0% tax rate applied after the personal allowance have been applied as follows: f Basic rate taxpayers 1,000 Higher rate taxpayers 500 Additional rate taxpayers Nil Note 3. A personal savings allowance applies at a 0% tax rate, applied after the personal allowance have been applied as follows: Basic rate taxpayers 1,000 Higher rate taxpayers 500 Additional rate taxpayers Nil Note 4: The first 2,000 of dividend income is taxed at 0% for all taxpayers. Note 5: The first 7,500 of rental income from renting part of the taxpayer's home is tax free if rent a room relief is claimed. Pension Scheme Limits Annual allowance Lifetime allowance Maximum contribution than can qualify for tax relief without earnings 40,000 1,055,000 3,600 ISA Annual Subscription Limit Overall Individual savings Accounts limit Lifetime ISA (18 to 40) Help to buy ISA 1,000 (initial maximum investment) then 200 per month 20,000 4,000 45p 25p Relevant to Employees Authorised Mileage Allowances When an employee has business usage of their own car Up to 10,000 miles Over 10,000 miles Car Benefit Percentage 0-50 g/km 51 - 75 g/km 76 - 94 g/km 95g/km (the base level of emissions) Each additional 5 g/km above the base level Diesel additional surcharge Maximum rate 16% 19% 22% 23% +1% +4% 37% Car Fuel Benefit The base figure for calculating car fuel benefits 24,100 ISA Annual Subscription Limit Overall Individual savings Accounts limit Lifetime ISA (18 to 40) Help to buy ISA 1,000 (initial maximum investment) then 200 per month 20,000 4,000 45p 25p Relevant to Employees Authorised Mileage Allowances When an employee has business usage of their own car Up to 10,000 miles Over 10,000 miles Car Benefit Percentage 0-50 g/km 51 - 75 g/km 76 - 94 g/km 95g/km (the base level of emissions) Each additional 5 g/km above the base level Diesel additional surcharge Maximum rate 16% 19% 22% 23% +1% +4% 37% Car Fuel Benefit The base figure for calculating car fuel benefits 24,100 Relevant to Traders Capital Allowances Plant and Machinery Main pool Special rate pool Energy & water efficient equipment 18% 6% 100% Motor Cars CO2 emissions up to 50 grams per kilometre CO2 emissions over 50 grams up to 110 grams per kilometre CO2 emissions over 110 grams per kilometre 100% 18% 6% Annual Investment allowance Rate of allowance Expenditure limit 100% 1,000,000 Styles Capital Gains Tax Annual exemption Standard rate of tax (assets other than residential property) Higher rate of tax (assets other than residential property) Standard rate of tax on residential property Higher rate of tax on residential property 12,000 10% 20% 18% 28% Entrepreneurs' relief For trading businesses and companies held for at least one year (minimum 5% employee shareholding) Lifetime limit of gains Rate of tax 10,000,000 10% Lease Premium Formulae Capital proportion is 2% (n-1) P Chattels Formulae Gains restricted to 5/3(gross proceeds - 6,000) National Insurance (not contracted-out rates) Primary Class 1 employees 0 - 8,632 per year Above 8,632 - 50,000 per year Above 50,000 per year Secondary Class 1 employer 0 - 8,632 per year Above 8,632 per year % Nil 12.0 2.0 Nil 13.8 ---- Paragraph Class 1 employer O - 8,632 per year Above 8,632 per year Styles Nil 13.8 Class 1A employer On benefits in kind 13.8 Sole traders Class 2 Paid weekly If earnings are above the small profits threshold of 6,365 pa 3pw Class 4 0 - 8,632 per year Above 8,632 - 50,000 per year Above 50,000 per year Nil 9.0 2.0 Rates of Interest Official rate of interest for benefits in kind Rate of interest on underpaid tax Rate of interest on overpaid tax 2.50% 3.25% 0.50% Supplementary Instructions 1. You should assume that the tax rates and allowances for the tax year 2019/20 will continue to apply for the foreseeable future unless you are instructed otherwise. 2. Calculations and workings need only be made to the nearest . All apportionments should be made to the nearest Voice The General Principle. Revenue expenditure is allowed if wholly and exclusively incurred for trade purposes but capital expenditure is disallowed as relieved via capital allowances instead (step two). Therefore, DISALLOW capital transactions and any revenue transactions that fail the wholly and exclusively rule. Common disallowable expenditure: Personal expenditure and appropriation of profits (1) Salary of proprietor (2) Tax/NIC of proprietor e.g. Class II and IV NIC's (3) The sole trader's private proportion of expenses bome by the business (4) Dual expenses e.g. clothing and food (5) sole traders Drawings or salary Capital (1) Depreciation (2) Loss or profit on sale of asset (3) Legal expenses re capital items (4) Capital in repairs accounts (5) taking out a new lease or renewing a long lease Entertaining Disallow customer entertaining (but staff entertaining and gifts are always allowable) Gifts to customers or suppliers Disallow unless - cost