Tax adjusted trading profit – Cash basis

Dear tutor,

I have 2 questions related to this exercise of computing taxable profit using cash basis:
1. Why is the cost Food, utilities, etc. £25,000, instead of £16,250 (£25,000*65%), when the private use percenttage is 35%?
2. Why the running cost of the car £3,000 is not deducted from the revenue?
3. Why calculating business mileage is: 10,000 miles at 45p/mile and 1,000 miles at 25p/mile, without considering the private use of 40%?

Thank you in advance!

“Ega commenced trading as a sole trader, operating a small bed and breakfast business, on 6 April 2023.
For the year ended 5 April 2024, Ega had the following transactions:

Total income of £74,500 during the year, of which £10,000 remained unpaid at 5 April 2024.

She incurred £25,000 in expenditure on food, utilities, and other household costs. Ega lives in part of the business premises with her husband and two children, and 35% of these costs relate to private use. The applicable HMRC flat rate private use adjustment for four occupants of business premises is £7,800.

On 1 June 2023, Ethel purchased a car for £14,000 by cheque. The vehicle has CO? emissions of 40 grams per kilometre. During the year, she also incurred £3,000 in running costs. The car was used 40% for private purposes, and she travelled 11,000 miles for business during the year.

On 1 March 2024, Ethel bought kitchen equipment costing £350 on credit. The supplier’s invoice was settled on 15 April 2024.

Required:

(a) Calculate Ethel’s tax-adjusted trading profit for the year ended 5 April 2024, assuming the cash basis and HMRC flat rate expense adjustments.”