Taxation of the unincorporated business for ATX (UK) - part 2: self-test

Test your understanding

(1). Jocasta is a partner in the TYJ Partnership. She receives a salary of £18,000 per year and a 20% share of the partnership profits after deduction of the partners’ salaries.

What classes of National Insurance contributions will Jocasta pay in respect of her income from the partnership?

(2). RFJ Ltd had taxable total profits of £85,000 for the year ended 31 March 2021. The company paid a dividend of £38,000 to Rakel, a higher rate taxpayer, on 28 February 2021. Rakel did not receive any dividends other than those received from RFJ Ltd.

What is the total tax suffered by RFJ Ltd and Rakel in respect of this dividend?

(3). UBJ Ltd had taxable total profits of £435,000 for the year ended 31 March 2021. During that year the company paid a bonus of £28,000 to one of its employees. This was in addition to an annual salary of £70,000.

What is the post-tax cost to the company of the payment of this bonus?

Answers