Kevin was given two flats by his aunt which he rents out as furnished holiday accommodation. There has been high demand for the flats and they have been rented almost non-stop for the 2020/21 tax year. The rental he received is as follows: Flat 1 £25,550 Including £1,750 received on 1 April 2021 which relates to the fortnight beginning 14th April 2021. Flat 2 €17.890 This excludes £850 received on 4th April 2020 which relates to the week ended 14th April 2020. Kevin has other taxable income of £34,500 before taking into account his personal allowance. What is the difference in income tax payable if Kevin chooses to be taxed under the cash basis in the 2020/21 tax year? increase of £1,040 O decrease of £360 Ⓒincrease of £360 O decrease of £1,040
Kevin was given two flats by his aunt which he rents out as furnished holiday accommodation. There has been high demand for the flats and they have been rented almost non-stop for the 2020/21 tax year. The rental he received is as follows: Flat 1 £25,550 Including £1,750 received on 1 April 2021 which relates to the fortnight beginning 14th April 2021. Flat 2 €17.890 This excludes £850 received on 4th April 2020 which relates to the week ended 14th April 2020. Kevin has other taxable income of £34,500 before taking into account his personal allowance. What is the difference in income tax payable if Kevin chooses to be taxed under the cash basis in the 2020/21 tax year? increase of £1,040 O decrease of £360 Ⓒincrease of £360 O decrease of £1,040
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education