Income Tax and NIC Liabilities

Section A: Objective Test Which of the following statements regarding National Insurance Contributions (NICs) is correct for the 2023/24 tax year?

Section A AgriCorp Ltd granted a 21-year lease on a piece of agricultural land to a tenant farmer. AgriCorp Ltd received a premium of £60,000 upon the grant of the lease, in addition to annual rent. What amount of the premium will be assessed as property income for AgriCorp Ltd in the year the lease is granted?

Section A Quantum Robotics Ltd, a tech startup, provided its marketing director with a new fully electric company car (0g/km CO2 emissions) throughout the tax year 2023/24. The car has a list price of £50,000. The company also paid £800 for electricity to charge the car. What is the Class 1A National Insurance Contribution (NIC) liability for Quantum Robotics Ltd regarding this benefit?

Section A For the tax year 2023/24, what is the minimum tapered annual allowance for pension contributions for a high earner whose adjusted income exceeds £260,000?

Section B - Case 2 (GreenRoots LLP) GreenRoots LLP, an environmental NGO consultancy, has been trading for many years, making accounts up to 30 September. In 2023/24, they decide to change their accounting date to 31 December. They prepare accounts for the 15 months from 1 October 2022 to 31 December 2023. What is the basis period for the tax year 2023/24?

Section B - Case 2 (GreenRoots LLP) GreenRoots LLP has two partners, Sarah and Tom. For the year ended 31 December 2023, the partnership's tax-adjusted trading profit is £120,000. Sarah receives an annual salary of £20,000. The remaining profits are split equally (50:50). What is Tom's share of the trading profit for tax purposes?

Section B - Case 2 (GreenRoots LLP) Tom's allocated share of the partnership trading profit for 2023/24 is £50,000. He has no other income. Which classes of National Insurance Contributions (NIC) is Tom liable to pay?

Section B - Case 2 (GreenRoots LLP) GreenRoots LLP purchased a diesel car (CO2 emissions 110g/km) for £20,000. Sarah uses this car 60% for partnership business and 40% for private use. How are the capital allowances for this car calculated in the partnership's tax computation?

Section B - Case 2 (GreenRoots LLP) Correction to previous question's logic applied here: Assume GreenRoots LLP ceases trading on 31 March 2024, generating a terminal loss of £30,000 for Tom. Against which years can Tom carry back this terminal loss?

Section C **Scenario: Dr. Aris Thorne** Dr. Aris Thorne (aged 45) is a medical researcher and consultant. For the tax year 2023/24, he has the following income and outgoings: **1. Employment Income:** Aris is employed by a private hospital. His gross salary for 2023/24 was £85,000. During the year, his employer provided him with private medical insurance costing £1,200. His employer also paid £500 towards his professional medical subscriptions (which are on HMRC's approved list). PAYE deducted from his salary was £18,500. **2. Self-Employment Income:** Aris runs a private consultancy clinic. His tax-adjusted trading profit for the year ended 5 April 2024 was £42,000. This figure is before deducting capital allowances. On 10 May 2023, Aris purchased new medical testing equipment for £15,000. The main pool balance brought forward at 6 April 2023 was £4,000. **3. Investment Income:** Aris received UK dividends of £4,500 and building society interest of £1,800. Both figures are the actual amounts received. **4. Outgoings:** Aris made net contributions of £3,200 to his personal pension scheme. He also made a Gift Aid donation of £800 (net) to a medical charity. **Required:** Calculate Dr. Aris Thorne's Income Tax payable for the tax year 2023/24. *Note: You should clearly show all steps, including the calculation of capital allowances, total income, net income, taxable income, and the extension of the basic rate band.*

Section A: Objective Test Helena is employed by a tech startup. During the 2023/24 tax year, her employer provided her with the following benefits: 1. Workplace parking at the office (cost to employer £800). 2. A mobile phone for personal and business use (cost to employer £400). 3. Medical treatment to help her return to work after an injury (cost to employer £600). 4. Gym membership at a local public leisure centre (cost to employer £500). Which of these benefits are EXEMPT from income tax?

Section A: Objective Test EcoDrive Ltd provided its sales director with a new fully electric company car (0g/km CO2 emissions) on 6 April 2023. The list price of the car was £45,000. The company also paid £600 for electricity to charge the car at the director's home. What is the Class 1A National Insurance Contribution (NIC) liability for EcoDrive Ltd for the 2023/24 tax year in respect of these benefits?

Section A: Objective Test Fiona lets out a fully furnished residential property. During the tax year, she replaced an old washing machine (original cost £300) with a new, upgraded washer-dryer costing £600. A standard replacement washing machine would have cost £400. She paid £50 to dispose of the old machine. What is the allowable deduction for Replacement of Domestic Items Relief?

Section C: Constructed Response Dr. Elena Rostova is an independent environmental consultant. For the tax year 2023/24, she has the following sources of income: 1. Self-Employment (Trading Income): Elena's draft statement of profit or loss for the year ended 5 April 2024 shows a net profit of £95,000. This figure was arrived at after deducting the following expenses: - Depreciation: £4,500 - Client entertaining: £1,200 - Staff entertaining (annual Christmas party for her 2 employees): £250 - Professional subscription to the Institute of Environmental Sciences: £350 - Parking fines incurred while visiting clients: £150 Capital allowances for the year have been correctly calculated as £3,800. 2. Employment Income: Elena also works part-time as a lecturer at a local university. Her gross salary for 2023/24 was £22,000. PAYE deducted was £2,100. The university provided her with private medical insurance costing £800. 3. Property Income: Elena owns a Furnished Holiday Let (FHL) in Cornwall. During 2023/24, the gross rental income was £15,000. Allowable expenses (excluding interest) were £4,000. She paid £3,000 in mortgage interest on the loan used to purchase the property. 4. Investment Income: Elena received dividends of £4,000 from UK companies. Required: Calculate Dr. Elena Rostova's Income Tax liability for the tax year 2023/24. Note: You should show all workings, including the adjustment of trading profit, the calculation of property income, and the computation of adjusted net income to determine her personal allowance.