Income tax and national insurance contributions

Section A Sylvia owns a large converted barn which is her main residence. During 2023/24, she let out two furnished rooms to eco-tourists, receiving total rent of £8,200. She incurred allowable expenses of £1,400 related to the letting. Assuming Sylvia wishes to minimize her taxable income, what is her taxable property income for 2023/24?

Section A 'NovaTech Ltd', a tech startup, provides the following benefits to its employees: 1. A workplace nursery located on the company's premises. 2. Mobile phones (one per employee) registered in the company's name. 3. Subsidized meals in the staff canteen, available to all staff. 4. Gym memberships at a local public leisure centre. Which of these benefits are EXEMPT from income tax for the employees?

Section A Dr. Aris, a marine biologist, is provided with a petrol company car by his employer. The car has a list price of £28,000 and CO2 emissions of 115g/km. The employer also pays for all private fuel. What is the Class 1A National Insurance Contribution (NIC) payable by the employer for the tax year 2023/24? (Assume a Class 1A rate of 13.8% and the relevant CO2 percentage is 28%).

Section B - Case 1: Quantum Aquatics Zara and Felix run 'Quantum Aquatics', a partnership specializing in hydro-electric turbine maintenance. They share profits in the ratio 3:2. The partnership has always prepared accounts to 31 December. On 30 September 2023, Felix retired, and Zara continued as a sole trader. The partnership's tax adjusted trading profit for the 9-month period to 30 September 2023 was £90,000. What is the basis period for Felix's final tax year (2023/24)?

Section B - Case 1: Quantum Aquatics Zara and Felix run 'Quantum Aquatics', a partnership specializing in hydro-electric turbine maintenance. They share profits in the ratio 3:2. The partnership has always prepared accounts to 31 December. On 30 September 2023, Felix retired, and Zara continued as a sole trader. The partnership's tax adjusted trading profit for the 9-month period to 30 September 2023 was £90,000. During the 9-month period to 30 September 2023, the partnership purchased specialized underwater welding gear for £1,200,000. What is the maximum Annual Investment Allowance (AIA) the partnership can claim for this 9-month period?

Section B - Case 1: Quantum Aquatics Zara and Felix run 'Quantum Aquatics', a partnership specializing in hydro-electric turbine maintenance. They share profits in the ratio 3:2. The partnership has always prepared accounts to 31 December. On 30 September 2023, Felix retired, and Zara continued as a sole trader. The partnership's tax adjusted trading profit for the 9-month period to 30 September 2023 was £90,000. How much of the £90,000 trading profit is allocated to Felix for the period to 30 September 2023?

Section C Dr. Elena Rostova is a highly paid consultant in the renewable energy sector. You are required to calculate her Income Tax Liability for the tax year 2023/24. She has the following income and outgoings for the tax year 2023/24: 1. Employment Income: - Gross salary of £115,000 from 'Eco-Power Ltd'. - Eco-Power Ltd provided her with an electric company car (zero CO2 emissions) with a list price of £45,000 for the whole tax year. - Elena made gross contributions of £8,000 into her employer's occupational pension scheme (deducted under the net pay arrangement). 2. Self-Employment Income: - Elena runs a small side-hustle providing independent environmental audits. Her gross income from this was £2,500. She incurred actual allowable expenses of £1,800. 3. Property Income: - Elena owns a commercial warehouse which she rents out. She received £12,000 in rent. Allowable expenses (insurance and maintenance) were £3,000. 4. Investment Income: - She received £4,000 in dividends from UK companies. - She received £1,500 in interest from a UK savings account. 5. Personal Pension: - Elena made a net contribution of £4,800 into a personal pension scheme during the year. Required: Calculate Dr. Elena Rostova's Income Tax Liability for the tax year 2023/24. Note: You should clearly show all workings, including the calculation of her Adjusted Net Income (ANI) to determine her Personal Allowance, and the extension of her basic rate band.

Which TWO of the following employment benefits provided to an agriculture worker are EXEMPT from income tax?

To qualify as a Furnished Holiday Letting (FHL), for how many days in the tax year must the property be available for commercial letting to the public?

An employer provides an employee with a new zero-emission electric company car. The list price is £40,000. The appropriate percentage for zero-emission cars is 2%. What is the Class 1A NIC liability for the employer for the 2023/24 tax year? (Assume the Class 1A rate is 13.8%)

What is the maximum adjusted income limit for the 2023/24 tax year before an individual's annual pension allowance begins to be tapered?

SCENARIO: Apex Consulting LLP is a management consulting firm. The partnership prepares accounts to 31 December each year. On 1 July 2023, a new partner, Beatrice, joined the partnership. Her share of the partnership profits for the year ended 31 December 2023 was £48,000. Prior to joining, Beatrice incurred £2,000 of training costs relevant to her new role. The partnership is considering changing its accounting date to 31 March. QUESTION: What is Beatrice's basis period for her first tax year (2023/24)?

SCENARIO: Apex Consulting LLP is a management consulting firm. The partnership prepares accounts to 31 December each year. On 1 July 2023, a new partner, Beatrice, joined the partnership. Her share of the partnership profits for the year ended 31 December 2023 was £48,000. Prior to joining, Beatrice incurred £2,000 of training costs relevant to her new role. The partnership is considering changing its accounting date to 31 March. QUESTION: Which classes of National Insurance Contributions (NIC) is Beatrice liable to pay on her partnership profits?

SCENARIO: Apex Consulting LLP is a management consulting firm. The partnership prepares accounts to 31 December each year. On 1 July 2023, a new partner, Beatrice, joined the partnership. Her share of the partnership profits for the year ended 31 December 2023 was £48,000. Prior to joining, Beatrice incurred £2,000 of training costs relevant to her new role. The partnership is considering changing its accounting date to 31 March. QUESTION: If the partnership changes its accounting date to 31 March, what is the maximum duration a period of account can be for tax purposes?

SCENARIO: Apex Consulting LLP is a management consulting firm. The partnership prepares accounts to 31 December each year. On 1 July 2023, a new partner, Beatrice, joined the partnership. Her share of the partnership profits for the year ended 31 December 2023 was £48,000. Prior to joining, Beatrice incurred £2,000 of training costs relevant to her new role. The partnership is considering changing its accounting date to 31 March. QUESTION: If Beatrice had made a trading loss in her first year, against what income could she offset this loss under early trade losses relief?

SCENARIO: Apex Consulting LLP is a management consulting firm. The partnership prepares accounts to 31 December each year. On 1 July 2023, a new partner, Beatrice, joined the partnership. Her share of the partnership profits for the year ended 31 December 2023 was £48,000. Prior to joining, Beatrice incurred £2,000 of training costs relevant to her new role. The partnership is considering changing its accounting date to 31 March. QUESTION: How are Beatrice's £2,000 pre-trading training costs treated for tax purposes?

SCENARIO: Elena Rostova is a senior executive for a cross-border tech multinational. She is UK resident and domiciled. For the tax year 2023/24, her salary is £120,000. She receives a company car (CO2 emissions 110g/km, list price £35,000) and fuel for private use. Her employer paid £8,000 for her relocation expenses (qualifying). She received £15,000 in UK dividends and £5,000 in property income from an overseas property (unremitted, but she does not claim the remittance basis). She made a gross Gift Aid donation of £4,000. REQUIREMENT: Calculate Elena Rostova's Income Tax Liability for the tax year 2023/24. Show all workings, including the calculation of employment benefits, total net income, and the application of tax bands.