Question
Perry works for Mahr Ltd. He also owns and runs a small trading business as a sole trader. Following information relates to the tax year
Perry works for Mahr Ltd. He also owns and runs a small trading business as a sole trader. Following information relates to the tax year 2019/20:
£
Employment income (before deduction of PAYE tax) 75,000
Trading income (taxable) 33,500
Dividends 6,250
Building society interest 2,200
Qualifying interest paid 1,000
Contribution to personal pension plan (net) 6,500
Mahr Ltd. has deducted £28,000 PAYE tax from payments made to Perry. Perry has donated £3,600 in gift aid to an approved local charity during the tax year 2019/20.
Required:
Calculate the taxable income and tax payable by Perry for the tax year 2019/20.
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Cornerstones of Financial and Managerial Accounting
Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen
2nd edition
978-0538473484, 538473487, 978-1111879044
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