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elements is shown). £3,726 in December,
----------------------- with an overdraft

Class 2 national interest charge on this
Insurance contribu- £152 making a total

tions – we have overdraft of £3,878.
assumed that you are

paing £20 a month.

Income Tax/Class 4

National Insurance –

these are payable in

two instalments, in

December and June,

and relate to the salary

described under

‘drawings’.

Drawings – we have

assumed that a salary

of £700 a month, to

cover living expenses,

is drawn.

-------------------------

As you can see, the

overdraft at the bank

rises to a maximum of
11