Income Tax

Business & Finance
Price: $10 USD

Question description

Fred Murray (the musician) has recently opened his own retail shop selling musical instruments. He closes accounts on 30 June each year. His profit for the year to 30 June 2015 was £12,700 after having deducted the following expenses:

  • Entertainment to foreign customers £1,500 (of which £350 was for entertaining his own family)
  • Penalty fees for non-submission of tax return £650
  • Light and heat  £2,250 (of which 20% was for private use)
  • Painting of the interior of the musical shop £1,550

Fred has investments on the London Stock Exchange, earning dividends of £1,890 (net).  He also holds two savings accounts, a cash ISA earning £450 as interest and a deposit account earning £1,280 (net) as bank interest in the tax year 2015/16.

On 1st July 2015, Fred was appointed as a musician in a famous hotel earning £28,800 as a basic annual salary plus a monthly bonus of £250 for good performance during the 2015/2016 tax year. He received a diesel car with CO2 emissions of 174 g/km (list price £38,000) from his employer. Accessories added to the car cost a further £4,000. Fred’s employer pays for all the fuel for his car.


Calculate Fred’s income tax due for the year 2015/16.  (21 marks)

Tutor Answer

(Top Tutor) Daniel C.
School: UC Berkeley
Studypool has helped 1,244,100 students
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1821 tutors are online

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors