SECTION 4 Q & A ANSWERS TO MOCK EXAMQUESTIONS 1 (A) MARK KETT –...

2,500 miles at 45p

1,125

Mileage allowance 2,500 at 16p

(400)

––––––

725

(7) The property business profit is calculated as follows:

£

£

Rent receivable

8,600

Agency fees (8,600 at 5%)

430

Wear and tear allowance

(8,600 at 10%)

860

(1,290)

––––––

––––––

Property business profit

7,310

(8) No deduction is available for furniture and furnishings where the wear and

(10) Interest from individual savings accounts and premium bond prizes are

exempt from income tax.

(11) Mark’s basic rate tax band is extended by £1,000 (800 x 100/80) to £35,370

(34,370 + 1,000) as a result of making the gift aid donation.

(b) (1) The business records relating to self-employment and property income

must be retained until five years after the filing date, which is 31 January