Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Taxation Expert

Both Bob and Catherine are in their early 30s.

Bob Marston is a UK resident taxpayer with two different sources of income. He works part time as a project manager for five different clients in UK. A separate contract is drawn up for each project. Bob works to a specific deadline, expected output, and the fee to be paid. Bob only needs a computer to do his work, which he has purchased himself and works mainly from home.

Bob also works two days a week (Monday and Tuesday) as a Financial Accountant for a nearby Business School. He is provided with his own office at the Business School, where he is required to be at his desk between 8a.m. and 6 p.m. Bob also gets holiday pay and sick pay from the Business School.

Bob’s wife, Catherine Jones is a full time director for a pharmaceutical company, ITU group, which she joined on 6 July 2013. Her gross pay for 2013-14 was £100,000and paid income tax under PAYE of £26,950.

Catherine is provided with a company car for both business and private use. Details of the cars provided during 2013-14 are as follows:

a) A Nissan - with a list price of £15,700, and emissions of 129g/km, this was available from 6 July 2013 to 5 October 2013.

b) From 6 October to 5 April 2014, Catherine obtained a BMW with a list price of £32,010emissions of 143g/km.

c) ITU group paid for all the running costs of both these cars but Catherine contributed £150 per month for the private use of the BMW car. She reimbursed ITU group for the private fuel of the Nissan motor car. Both the cars are petrol–driven.

On 6 August 2013, the company lent Catherin £27,000 at an interest rate of 2% per annum; Catherine repaid £18,000 of the loan on 6 March 2014.

Catherine is provide with a mobile telephone and uses this telephone for both business and private calls.

Catherine’s other income included, interest from Government Securities of £14,210, dividends from UK companies of £2,322 and ISA interest of £240.

Required:

a) prepare a report to discuss and apply the criteria, which may be used to determine whether Bob Marston should be regarded as employed or self-employed.

b) Prepare an income tax computation for Catherine Jones for the tax year 2013-14.

c) find out the national insurance payable in relation to Catherine Jones for 2013-14. You should assume that Catherine Jones in not contracted out.

d) find out the national insurance payable by the ITU group.

e) Assume official interest rate is 4%.

Taxation, Accounting

  • Category:- Taxation
  • Reference No.:- M96029

Have any Question? 


Related Questions in Taxation

Accounting taxa truefalse1 a distribution from a

Accounting Tax A.) True/False 1 A distribution from a corporation will be taxable to the recipient shareholders only to the extent of the corporation's E & P. 2 All distributions that are not dividends are a return of ca ...

Partnerships and tax-exempt organizations please respond to

"Partnerships and Tax-Exempt Organizations" Please respond to the following: • Imagine that your new client would like to form a partnership. The client has asked you to assist in avoiding transactions that might result ...

Calculating taxmicrotech software corporation msc was

Calculating Tax Microtech Software Corporation (MSC) was founded in 2001. The founder, Chan Li, studied at MIT and worked for a large software corporation before returning to his hometown, Centervale, to set up his own c ...

Requireduse the following information to complete paul and

Required: use the following information to complete Paul and Judy Vance's 2015 federal income tax return. Facts: 1. Paul J. and Judy L. Vance are married and file a joint return. Paul is selfemployed as a dentist, and Ju ...

Assignmentchapter 5problem 24at the start of the current

Assignment CHAPTER 5 PROBLEM # 24 At the start of the current year, Blue Corporation (a calendar year taxpayer) has accumulated E & P of $100,000. Blue's current E & P is $60,000, and at the end of the year, it distribut ...

Criterion 11 which of the following is not a primary tax

Criterion 1 1. Which of the following is NOT a primary tax authority? a. Treasury Regulation b. Revenue Ruling c. a Tax Court Memorandum decision d. an IRS publication 2. Congress' authority to enact an income tax was es ...

Assignment1you are the tax director for a fortune 500

Assignment 1. You are the tax director for a FORTUNE 500 company and the new CFO comes to you and asks you what ASC 740 is? He also asks you to tell him what a deferred tax asset is and when it can be reflected on the co ...

Assignmentbullhoffman w h raabe w a smith j e maloney d m

Assignment • Hoffman, W. H., Raabe, W. A., Smith, J. E., Maloney, D. M., & Young, J. C. (2016). South-western federal taxation 2016: Corporations, partnerships, estates and trusts ( 39th ed.). Mason, OH: South-Western Ce ...

Assigmn a letter to the board of directorsdecisions

Assigmn: A Letter to the Board of Directors Decisions involving capital expenditures often require managers to weight the costs and benefits of different options related to the same goal or project. For instance, decidin ...

Issue questions1 cable corporation which operates a fleet

ISSUE QUESTIONS 1. Cable Corporation, which operates a fleet of motorized trolley cars in a resort city, is undergoing a complete liquidation. John, who owns 80% of the Cable stock, plans to continue the business in anot ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen