Read the following taken from the directions for filling in a tax return and then answer the questions that follow.

How to complete your return

    1. Trade or profession.

    Enter the full amount of income (including profits, bonus, commission, fees, etc.) for the year ended 5 April 2000.

    Enter the nature of each trade or profession in which you were engaged during the tax-year, stating in each case whether you were self-employed either full-time or part-time by another person. Enter, in accordance with the directions in the appropriate section, the total income arising from each employment.

If:

    (a) you were responsible for certain payments (other than those for which tax relief may be claimed elsewhere in this return) in the pursuit of your trade or profession, or

    (b) any foreign tax for which credit is not allowable in this country was levied on your income, or

    (c) you incurred any loss in respect of capital depreciation (excluding that part of such loss chargeable to expenses under the provisions of Section 18 (e) below),

    you are entitled to deduct the amounts concerned in order to arrive at the total income to be declared for tax purposes. Full particulars must be provided on a separate sheet.

    2. Child's income.

    In certain instances, the income of an infant who is unmarried and not in regular employment is treated for tax purposes as income of the parent.

    An infant is regarded as being in regular employment if he is and intends to remain working either full-time or, if part-time, not less than half full-time, for a period of six months or more.

    Where the infant is domiciled separately from the parent or guardian for not less than half of the year for which tax is being assessed, the parent or guardian may under certain circumstances become eligible for an allowance in respect of expenses incurred.

    3. Income from property.

    Enter the total amount of any rent accruing from the letting or hiring of furnished or unfurnished property. Deduct admissible hiring of furnished or unfurnished property. Deduct admissible expenses and state the net income in the space provided.

    Enclose a detailed statement showing how the amount of your expenses was arrived at.

    You may include:

    (a) rates and rent,

    (b) the cost of structural maintenance,

    (c) letting and management charges paid to an agent,

    (d) insurance premiums (excluding those for policies covering third-party risks only).

    Where the income derives from properties situated outside the United Kingdom, the basis on which tax and allowances are calculated is different, and you should obtain from the Inspector of Taxes a copy of the leaflet "Notes on the Taxation of Rents from Property outside the United Kingdom".

    4. Other income.

    Enter the total amount of any other income not declared under Sections 1-3 above.

    Enclose a detailed statement showing the sources of this income and stating the amounts separately.

    If you are unable to state the whole of your other income for any reason (e.g. because of late payments of fees, royalties, etc.) do not delay sending in your return. Make a supplementary statement when details become available.

    5. Cessation of income.

    If you ceased to possess a source of income during the year ended 5 April 2000, full details should be given. Adjustments will then be made to secure that tax is charged only on income actually received.

    6. Allowances.

    You may claim allowances in respect of expenses incurred by you wholly and exclusively in pursuit of your trade or profession.

If a motor vehicle is provided by you at your own expense and is used solely in the pursuit of your trade or profession, you may claim:

(a) an allowance in respect of wear and tear,

(b) if the vehicle was purchased during the year ended 5 April 2000, an allowance equal to one third of the cost of the car.

    Questions:

    1. When you enter the full amount of income, what other information should you supply?

( Enter the nature of each trade or profession in which you were engaged during the tax-year, stating in each case whether you were self-employed, or either employed full-time or part-time by another person. Enter, in accordance with the directions in the appropriate section, the total income arising from each employment. )

    2. What will you do with a child's income?

( Pay tax in certain instances for the income of your child unmarried and not in regular employment as your income. )

    3. What expenses can you deduct from your income from property?

( The cost of structural maintenance, letting and management charges paid to an agent, insurance premiums (excluding those for policies covering third-party risks only). )

    4. How can you claim allowances?

( You may claim allowances in respect of expenses incurred by you wholly and exclusively in pursuit of your trade or profession. If a motor vehicle is provided by you at your own expense and is used solely in the pursuit of your trade or profession, you may claim: an allowance in respect of wear and tear, and if the vehicle was purchased during the year ended 5 April 2000, an allowance equal to one third of the cost of the car. )

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