Required Calculate the income tax payable Manuel and his wife Marlin for the charge year 2023.
QUESTION ONE
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Manuel, aged 55, has been married to Marlin, aged 50, for many years. |
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Manuel has been employed by Chiili Ltd at an annual salary of K60,000. He is also entitled to a car allowance of K15,000 per annum. The tax deducted under the PAYE system for the year 2023 was K16,059. He also paid NAPSA contributions of K3,000. |
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During the year 2023, the company offered him a house which he bought and decided to rent out with effect from 1 June 2023. This was after he spent K1,200 on initial repairs to make the house habitable. The house could not be occupied without this expenditure being incurred. |
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The first tenant took residence in the house at an annual rental of K3,400 (net) payable quarterly in advance, on 1 July 2023. Other expenses incurred in addition to the initial repairs were: |
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Insurance |
1 800 |
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Decoration and painting |
550 |
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General maintenance |
600 |
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Electricity |
450 |
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The insurance premuim paid of K1,800 is the annual premium covering the year from 1 June 2023 to 31 May 2024. |
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Manuel's wife Marlin runs a small business that produced a net profit for the year ended 31 December 2023 of 85,000 out of a turnover of K945,000. The profit was after dealing with the following items: |
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Bank interest received of K900 for the year was credited to the income statement. The figure is the net amount. |
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The cost of new equipment of K5,000 was written off in the income statement. These are the only equipment available in the year. All the old equipment had been disposed of at their income tax value on 31 December 2023. |
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Rent payable for the business premises of K2,400 was charged to the income statement. |
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The couple does not have any other income and outgoings apart from those mentioned above. |
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Required |
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Calculate the income tax payable Manuel and his wife Marlin for the charge year 2023. |
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