On 1 June 2014 Jeremy commenced in self-employment running a retail shop. Jeremys statement of profit or loss for the year ended 31 May 2015 is as follows:

Gross Profit 140,880

Expenses:

Depreciation 4,760

Light and heat (Note 1) 1,525

Motor expenses (Note 2) 4,720

Professional fees (Note 3) 2,300

Rent and rates (Note 1) 3,900

Repairs and renewals (Note 4) 5,660

Sundry expenses (Note 5) 2,990

Wages and salaries (Note 6) 84,825

110,680

Net profit 30,200

Notes Note 1: Private accommodation Jeremy and his wife live in a flat that is situated above the clothing shop. Of the expenditure included in the statement of profit or loss for light, heat, rent and rates, 40% relates to the flat.

Note 2: Motor expenses During the year ended 31 May 2015, Jeremy drove a total of 12.000 miles, of which 9,000 were for private journeys.

Note 3: Professional fees Professional fees are as follows:

Accountancy 700

Legal fees in connection with the purchase of the clothing shop 1,200

Debt collection 400

2,300

Included in the figure for accountancy is 250 in respect of a capital gains tax computation.

Note 4: Repairs and renewals The figure of 5,660 for repairs and renewals includes 2,200 for decorating the clothing shop during July 2014, and 1,050 for decorating the private flat during August 2014. The building was in a usable state when it was purchased.

Note 5: Sundry expenses The figure of 2,990 for sundry expenses, includes 640 for gifts to customers of food hampers costing 40 each, 320 for gifts to customers of pens carrying an advertisement for the clothing shop costing 1.60 each, 100 for a donation to a national charity, and 40 for a donation to a local charitys fete. The fetes programme carried a free advertisement for the clothing shop.

Note 6: Wages and salaries The figure of 84,825 for wages and salaries includes the annual salary of 15,500 paid to Jeremys wife. She works in the clothing shop as a sales assistant. The other sales assistants doing the same job are paid an annual salary of 11 ,000.

Note 7: Goods for own use During the year ended 31 May 2015, Jeremy took clothes out of the shop for his personal use without paying or accounting for them. The cost of these clothes was 460, and they had a selling price of 650.

Note 8: Plant and machinery The capital allowances available for the year ended 31 May 2015 are 13,060. (In the actual examination you will be required to do a capital allowances computation and work out this figure.)

Calculate Jeremys tax adjusted trading profit for the year ended 31 May 2015.