Question
Melina is a student and gets paid 23,000 per year for her work in a catering company. In her free time, she sells Avon products
Melina is a student and gets paid £23,000 per year for her work in a catering company. In her free time, she sells Avon products on ebay. In the tax year 2020/2021 she was paid £8,500 for selling the products online. She also sold a classic car for £25,000 that she had bought for £10,000 six years earlier. In the last tax year, she spent £800 on postage. She also pays ebay a commission of 3% on the sale of any of her products. She also has £10,000 in a savings account which pays 2% interest gross (that is tax is not deducted at source). Many years ago, she bought a 10% shareholding in a friend’s business (which is a limited company). In the last tax year, she received a dividend of £7,000 from this business.
A. Calculate how much income tax Melina pays.
B. Calculate how much capital gains tax Melina pays.
C. Calculate the other taxes Melina pays. (3 marks) D. Calculate the total amount of tax that Melina pays in the year.
Step by Step Solution
3.34 Rating (145 Votes )
There are 3 Steps involved in it
Step: 1
A Melinas taxable income 23000 8500 800 30700 Income tax payable 30700 x 20 6140 Less Pers...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started