June 2023 to March 2024 exams Watch free ACCA TX lectures
Example 6 Until 30 June 2022 Wendy was employed as a management consultant at an annual salary of
£40,000.
On 1 July 2022 Wendy commenced in self-employment running a music-recording studio. The
following information relates to the period of self-employment from 1 July 2022 to 5 April 2023:
1
The adjusted profit for the period 1 July 2022 to 5 April 2023 is £89,000. This figure is before
taking account of capital allowances.
2
Wendy purchased the following assets:
Compute Wendy’s income tax liability for 2022/23 2.2. Cessation of trade (a)
No WDA, AIA or FYA are available in the final period of trading and balancing adjustments will
arise on cessation.
(b)
If there are additions in the final period, these are added to the relevant pool, then disposal
proceeds (limited to cost) are deducted to find a balance.
(c)
If the net balance is still positive then a balancing allowance will arise, whereas if the net
balance is a negative figure then a balancing charge arises.
£ 1 July 2022
Recording equipment
30,000
15 August 2022
Motor car (CO
2
emissions are 70 g/km) used by Wendy - 60%
business use
14,800
20 October 2022 Motor car (CO
2
emissions are 35 g/km) used privately by employee -
20% private use)
10,400
4 March 2023
Computer
2,600
64
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June 2023 to March 2024 exams Watch free ACCA TX lectures
