Yvonne is single with no children, aged 33. This year she started… Yvonne is single with no children, aged 33. This year she started her own architecture business and operates as a sole trader. The accounting profit for the 2018 year for her business was 75,600. Included as deductions in the accounting profit was 899 of entertainment expenses for third parties and 5,500 of donations. The accounting depreciation was 6,850 the capital allowances (tax depreciation) is 5,200. She was an employee for the first three weeks of the year before leaving to start her own business. As an employee she earned 5,000 which was PAYE source deducted. The 2018 tax credits Yvonne is eligible for are a single person tax credit of 1,650 and a PAYE tax credit of 1,650.Required:Read the information above and then use the excel assessment template to complete the requirements below.Enter the amount of income that is taxed at 20% amount into the grey box next to ‘Yvonne’s up to amount’ in the answer spreadsheet. This is important so ensure you identify the correct amount. Note: This amount is also the basis for the balance of her income to be taxed at 40%.Enter the relevant income figures for Yvonne’s into the answer spreadsheet and complete the relevant calculations.Calculate the income tax due for Yvonne for the year.Yvonne’s up to amountBusiness Accounting ProfitAdd back non-allowable deductionsEntertainmentDonationsAccounting depreciationLess allowable deductionsCapital allowanceBusiness Tax ProfitSalary (PAYE deducted)Total taxable incomeTax CreditsPersonalPAYE (available to employees only)Total Tax CreditsIncome Tax calculationTaxable incomeTax 20% up to – Tax 40% balance of incomeLess creditsIncome TaxLawSocial ScienceTax law BUSINESS AC223
