Becky's total taxable income for 2023/24

Non-savings
income Savings income Dividend income

Trading income (W1)

Employment income (W2)

Bank interest

Dividends

Net income

Personal allowance

Taxable income

WORKINGS
1 Trading income

Draft adjusted profits

Fine

Donation

Overdraft interest

Professional fees

Tax-adjusted trading profits

2 Employment income

Salary

Pension advice

Bicycle

Accommodation

Total employment income

LOs 3a, 3c, 3e, 3h

Total: 1 0 marks

4 Mandy
During 2023/24, Mandy received interest of £120 from a National Savings and Investments Direct Saver account
Mandy has been employed part-time by JKL Ltd since 2009. She received the following remuneration package i n
2023/24:
• salary £25,000 per year;
* gift of a painting from a client worth £60;
• eye test, costing £20, offered to all employees who use display screen equipment; and
• from 1 October 2023, use of a van for 20% work, 80% private use, with CO 2 emissions of 1 50 g/km. The van had a list
price of £9,000 and JKL Ltd paid for all Mandy's private fuel.
Mandy received £9,000 of dividends in March 2024 from an ISA.
Mandy has also run her own business as a sole trader for many years. Mandy has calculated her taxable trading profits for
2023/24 to b e £34,000. In arriving at her taxable trading profits, Mandy deducted the following amounts:
• £300 for the cost of gifts of a bottle of wine (£20 per bottle} to 1 5 clients;
• £375 for redecorating the office;
• a donation to a UK political party of £250; and
• legal fees of £800 for the review of employment contracts.

Requirement
Using the standard format below, compute Mandy's taxable income for 2023/24. You should enter a number in each
relevant box. If an amount is not taxable enter a zero o r a dash into the relevant box.
Mandy's total taxable income for 2 0 2 3 / 2 4

Non-savings
income Savings income Dividend income

Trading income (W1)

Employment income (W2)

Direct Saver interest

Dividends

Net income

Personal allowance

Taxable income

WORKINGS
1 Trading income

Trading profits

Gifts

Redecorating

Donation

Legal fees

Tax-adjusted trading profits

2 Employment income

Salary

Gift from client

Eye test

Van
 Total employment income

LOs 3a, 3c, 3e, 3h

Total: 1 0 marks

5 Jorge
Jorge received £500 of premium b o n d winnings during 2023/24.
Jorge has been employed part-time by UNO Ltd since 2013. He received the following remuneration package i n
2023/24:
• salary £55,000 per year;
• private medical insurance, costing M N O Ltd £500;
• a parking space at the office of M N O Ltd, which saved Jorge £500 pa; and
• Use of recording equipment owned by M N O Ltd, which was worth £8,720 when it as first provided to Jorge. Jorge
pays M N O Ltd £50 per month for use of the equipment.
Jorge received £950 of dividends i n June 2023 from a UK company.
Jorge has also run his own business as a sole trader for many years. Jorge has calculated his draft taxable trading profits
for 2023/24 to be £1 12,000. In arriving at his draft taxable trading profits, n o account has been taken of the following
costs as Jorge was unsure of the correct treatment:
• £800 for a staff party for two employees;
• £2,000 for stock donated to a local school;
• £5,000 o n salary for himself; and
• £1,500 written off o n a loan to a former employee.
Requirement
Using the standard format below, compute Jorge's taxable income for 2023/24. You should enter a number in each
relevant box. If an amount is not taxable enter a zero o r a dash into the relevant box.
Jorge's total taxable income for 2 0 2 3 / 2 4

Non-savings Dividend
income Savings income income

£ £ £

Trading income (W1)

Employment income (W2)

Premium b o n d winnings

Dividends

Net income

Personal allowance

Taxable income

WORKINGS
1 Trading income

Trading profits

Staff party

Stock donation
 Salary ___________

Loan write off

Tax-adjusted trading profits

2 Employment income

Salary ___________

Private medical insurance

Parking space

Recording equipment

Total employment income ___________

LOs 3a, 3c, 3e, 3h

Total: 1 0 marks

6 Leanne
During 2023/24, Leanne received interest income of £60 o n a National Savings and Investments investment account.
Leanne has been employed part-time b y STU Ltd for many years. She received the following remuneration package in
2023/24:
• sala ry £18, 500 per year;
• pension contribution by the company of £925;
• from 1 October 2023, use of a RDE2 compliant diesel car with CO 2 emissions of 72 g/km. STU Ltd paid £20,000 for the
car although it has a list price of £23,000. Leanne pays for all her private fuel; and
■ a medical check-up with a private doctor which cost the company £500 and would have cost Leanne £600 is she had
paid for it herself.
Leanne received £500 of dividends in March 2024 from a UK company.
Leanne has also run her own business as a sole trader for many years. Leanne has calculated her draft taxable trading
profits for 2 02 3/2 4 to b e £19,500. In arriving at her draft taxable trading profits, n o account has been taken of the
following amounts as Leanne was unsure of the correct treatment:
• £6,000 for building work to extend the office in which Leanne works;
• £230 interest payable o n loan to extend office;
• accou nta ncy fees of £500 for payrol I services; a n d
• £100 of irrecoverable VAT relating to the cost of advertising in the local newspaper for which Leanne has lost the VAT
invoice.
Requirement
Using the standard format below, compute Leanne's taxable income for 2023/24. You should enter a number in each
relevant box. If a n amount is not taxable enter a zero or a dash into the relevant box.
Leanne's total taxable income for 2023/24

Non-savings
income Savings income Dividend income

£ £ £

Trading income (W1 }

Employment income (W2)

Investment account
 Dividends

Net income

Personal allowance

Taxable income

WORKINGS
1 Trading income

Trading profits

Building work

Interest

Accountancy fees

VAT re advertising

Tax-adjusted trading profits

2 Employment income

Salary

Pension contribution

Car

Medical

Total employment income

LOs 3a, 3c, 3e, 3h

Total: 1 0 marks

7 Simon
During 2023/24, Simon received £15 of income tax repayment interest, which related to overpaid income tax from
2021/22.
Simon has been employed part-time by VWX Ltd for many years. He received the following remuneration package in
2023/24:
• salary £10,000 per year;
• bonus of £200 in respect of the year ended 31 March 2023, paid on 31 July 2023.
• vouchers for a supermarket which can be used to buy £1,000 of goods, a n d which cost VWX Ltd £950; and
• private use of a camera from 1 July 2023, when the company acquired it for £1,500. Simon paid £90 during 2023/24
towards the use of the camera,
Simon received £1,000 of dividends in May 2023 from an overseas company.
Simon has also run his own business as a sole trader for many years. Simon has calculated his taxable trading profits for
2023/24 to b e £29,600. In arriving at his taxable trading profits, Simon deducted the following amounts:
■ costs of redecorating his office of £500;
• £2,000 fi n e for breach of Health and Safety regulations;
• £1,500 being a contribution to his personal pension scheme; and
• £200 fee to arrange an overdraft o n his personal bank account to pay for materials.
Requirement
Using the standard format below, compute Simon's taxable income for 2023/24. You should enter a number in each
relevant box. If an amount is not taxable enter a zero o r a dash into the relevant box.
Simon's total taxable income for 2 0 2 3 / 2 4

Non-savings
income Savings income Dividend income

Trading income (W1)

Employment income (W2)

Repayment interest

Dividends

Net income

Personal allowance

Taxable income

WORKINGS
1 Trading income

Trading profits

Decorating

Fine

Pension contribution

Overdraft fee

Tax-adjusted trading profits

2 Employment income

Salary

Bonus

Vouchers

Camera

Total employment income

LOs 3a, 3c, 3e, 3h

Total: 1 0 marks
8 Finlay
Finlay received £300 of interest o n Treasury stock during 2023/24.
Finlay has been employed part-time by YZZ Ltd since 2010. He received the following remuneration package in 2023/24:
■ salary £1 5,000 per year;
■ meal vouchers of £4 per day for 240 days;
• from 1 January 2024, provision of living accommodation, a flat, which was rented by the company for £12,000 pa. The
annual value of the flat was £1 3,000 and market value was £200,000. Finlay paid £300 to the company for use of the
flat in 2023/24; and
■ attendance at the annual summer party for staff, which cost YZZ Ltd £120 per employee.
Finlay received £810 of dividends i n March 2024 from an ISA.
Finlay has also run his o w n business as a sole trader for many years. Finlay has calculated his draft taxable trading profits
for 2023/24 to be £50,000. In arriving at his draft taxable trading profits, n o account has been taken of the following
amounts as Finlay was unsure of the correct treatment:
• £2,1 00 for a contribution into an occupational pension scheme for Finlay's employee;
• £1,700 o n registering a patent to use in Finlay's business;
• £1,000 o n customer gifts of diaries, costing £10 each and bearing the name of Finlay’s business; and
• £190 subscription to the local Chamber of Commerce.
Requirement
Using the standard format below, compute Finlay's taxable income for 2023/24. You should enter a number in each
relevant box. If a n amount is not taxable enter a zero or a dash into the relevant box.
Finlay's total taxable income for 2 0 2 3 / 2 4

Non-savings
income Savings income Dividend income

Trading income (W1)

Employment income (W2)

Treasury stock interest

Dividends

Net income

Personal allowance

Taxable income

WORKINGS
1 Trading income

Trading profits

Pension contribution

Patent

Diaries

Subscription

Tax-adjusted trading profits

 2 Employment income

Salary

Meal vouchers

Accommodation

Summer party

Total employment income

LOs 3a, 3c, 3e, 3h

Total: 1 0 marks

9 Victoria
Victoria received lottery winnings of £1 7,000 during 2023/24.
Victoria has been employed part-time by ABC Ltd since 2012. She received the following remuneration package in
2023/24:
• salary £122,770 per year;
• attendance at a football match with a client, with ticket costing £60 paid by the client;
• use of childcare facilities at her place of work, costing ABC Ltd £5,000 in respect of Victoria's daughter; and
■ use of a company car with CO 2 emissions of 95 g / k m . The car's list price was £31,000, and ABC Ltd paid a further £500
o n 6 April 2023 for accessories for the car. Victoria pays £1,000 towards the use of the car. Victoria pays for all her
private petrol.
Victoria received £5,000 of dividends i n January 2024 from a UK company.
Victoria has also run her own business as a sole trader for many years. Victoria has calculated her taxable trading profits for
2023/24 to b e £19,000. In arriving at her taxable trading profits, Victoria deducted the following amounts:
• £1,000 Gift Aid donation to a national charity;
• £800 repairs to the roof of her office building;
• £1,500 legal fees in relation to a new lease over a storage unit; and
• £900 for the purchase of goods which Victoria then took from the business for her own use, without recording the
withdrawal. The goods could have been sold for £1,200.
Requirement
Using the standard format below, compute Victoria's taxable income for 2023/24. You should enter a number in each
relevant box. If a n amount is not taxable enter a zero o r a dash into the relevant box.
Victoria's total taxable income for 2023/243

N on-savings
income Savings income Dividend income

£ £ £

Trading income (W1 }

Employment income (W2)

Lottery winnings

Dividends ___________

Net income

Personal allowance

Taxable income