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IV.Calculation Questions (55 marks) 1. On 6 April 2015, Joe commenced employment with Echo Ltd. The following information is ava (1) During the tax year

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IV.Calculation Questions (55 marks) 1. On 6 April 2015, Joe commenced employment with Echo Ltd. The following information is ava (1) During the tax year 2015-16, Joe was paid a gross annual salary of 23,700. (2)Throughout the tax year 2015-16, Echo Ltd provided Joe with living accommodation. The cc annual value of the property is 4,600. The property was furnished by Echo Ltd during March 201 Required: Calculate Joe's employment income for the tax year 2015-16. (20 marks) 2. Chi commenced self-employment on 6 April 2015, and for the year ended 5 April 2016 her trading Note Motor expenses Required: Calculate Joe's employment income for the tax year 2015-16. (20 marks) 2. Chi commenced self-employment on 6 April 2015, and for the year ended 5 April 2016 her trading profit using the Notel Revenue (Note 1) 72,500 Expenses 2 4,400 Other expenses (Note 2) 3 8,200 Capital allowances 4 6,900 (19,500) Trading profit 53,000 Note 1 - Revenue The revenue figure of 72,500 includes receivables of 1,600 which were owed as at 5 April 2016. Note 2 - Other expenses T other expenses figure of 8,200 includes payables of 900 which were owed as at 5 April 2016, Required: 1. Based on the trading profit of 53,000 for the year ended 5 April 2016, what is Chi's income tax liability for the tax ya 2.1f Chi uses the cash basis, what is the amount of revenue which is chargeable (note 1) and the other expenses (note 2) w A.Revenue 72,500, other expenses 8,200 B.Revenue 70,900, other expenses 8,200 C.Revenue 72,500, other expenses 7,300 D. Revenue 70,900, other expenses 7,300 3. Adam owns owns a freehold house which is let out furnished. (1)The property was let throughout the tax year 2015-16 at a monthly rent of 660. (2) During the tax year 2015-16, Simon paid council tax of 1,320 in respect of the property, and also spent 2,560 on (3) Simon claims the wear and tear allowance, Required: Calculate Adam's property business profit for the tax year 2015-16. (15 marks)

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