Question 2

Henry also runs his own consultancy business, running personal finance workshops. This year he made profits of 8,700 after deducting personal withdrawals of 3,600. He kept accurate mileage logs and charged 245 in petrol costs to arrive at this profit, and deducted the cost of gifts to personal contacts who had referred clients to him, amounting to 970.

Required:

Calculate for Henry the correct profits that he should include on his tax return for 2021/22.