WEEK 18/10 – Seminar Question
MIRABELLE MARTINEAU
Mirabelle Martineau has been self-employed as a landscape gardener since 1 July 2018.
Her profits, adjusted for income tax but before capital allowances, are:
£
1 July 2018 – 30 June 2019
1 July 2019 – 30 June 2020
1 July 2020– 30 September 2021
25,000
50,000
37,000
Capital equipment was purchased as follows:
£
1 August 2018
1 September 2018
1 October 2018
Mini tractor
Car (CO2 emissions 46 grams per kilometre)
Mini bulldozer
7,000
17,500
9,000
Private usage of the car by Mirabelle was 25%.
Mirabelle ceased trading on 30 September 2021 and sold the assets for:
£
Mini tractor
Car
Mini bulldozer
4,000
8,000
4,500
She also received bank interest of £18,122 in the tax year 2021/22.
Required:
(a)
Calculate the amounts assessed to income tax as trading income on Mirabelle for the
tax years 2018/19, 2019/20, 2020/21 and 2021/22.
(b) Calculate the income tax payable by Mirabelle for the tax year 2021/22.
Assume that the rates and allowances for the tax year 2021/22 apply throughout this
question. Ignore VAT.