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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. 


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