The questions are:


a) The business will earn £100,000 in its first year. You can claim tax relief against purchase of computers and printers. Calculate the relief based on total equipment costs over three years: first year at 100%, second year at 50%, and third year at 25%


b) The remainder after tax relief is profit taxed at 21%. Calculate the tax liability.


The cost of computers where £3000, and the cost of the printers where £1000


I had to calculate the costs for setting up a business and the PMT, PPMT and IPMT for taking a loan from the bank. Here's a screenshot of my excel sheet. http://imgur.com/WAuYtCJ


Anyone know how to do this or know a place where I can find out? I'm using excel for the first time and I'm so confused

a)

First year relief = 100% of £ 4,000, or £ 4,000
Second year relief = 50% of £ 4,000, or £ 2,000
Third year relief = 25% of £ 4,000, or £ 1,000

So total relief = £ 7,000 (sum of the relief for the three years).

b) 21% of £ 7,000 = £ 1,470

I don't know where you want to put these calculations in your Excel spreadsheet, but from what you say these are the figures you need.

enter in cell A1 =4000*1 enter in cell B1=4000*.5 enter in cell C1 =4000*.25 use sum function in cell D1 =sum(A1:C1)
enter in cell E1 =((4000-A1)+(4000-B1)+(4000-C1))*.21


Enter in cell F1 3000
Enter in cell G1 1000

use sum function Cell H1 =sum(F1:G1)

BUY EXCEL for DUMMIES

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