Andrew has been soll employed as a builder for several years and generated taxable trading profit of E82,000 inthe 2020/21 an year, He has trading losses brought forward of £10,000.His partne Sophio works part time as a mobilc dog groomer and has taxable trading profit of £10,560 for the taxvear 2020,2XWoat are the tetai NICs payable by Andrew and Sophie for the tax year 2020/21?E160

Since tax rates not given, Taken from official sites, Since profits are above £9,569,therefore…

Andrew has ben soll employed as a builder for several years and generated taxable trading profit of £82,000 in the 2020/21 an year, He has trading losses brought forward of £10,000. His partner Sophie wurks part time as a mobilc dog groomer and has taxable trading profit of E10.560 for the tax vear 2020,2 What are the tetai NICx payable by Andrew and Sophie for the taxyear 2020/21?

Andrew has ben soll employed as a builder for several years and generated taxable trading profit of £82,000 in the 2020/21 an year, He has trading losses brought forward of £10,000. His partner Sophie wurks part time as a mobilc dog groomer and has taxable trading profit of E10.560 for the tax vear 2020,2 What are the tetai NICx payable by Andrew and Sophie for the taxyear 2020/21?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.

Question

Andrew has been soll employed as a builder for several years and generated taxable trading profit of E82,000 in
the 2020/21 an year, He has trading losses brought forward of £10,000.
His partne Sophio works part time as a mobilc dog groomer and has taxable trading profit of £10,560 for the tax
vear 2020,2X
Woat are the tetai NICs payable by Andrew and Sophie for the tax year 2020/21?
E160

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