(iii) Prepare a schedule of the payments (tax and national insurance) she will be required

(iii) Prepare a schedule of the payments (tax and national insurance) she will be required to make direct to

the Revenue in respect of the years of assessment 2005/06 and 2006/07, clearly identifying for each

payment listed, the amount, the nature of the liability/liabilities, and the due date. (5 marks)


  • 悬赏:0 答案豆
  • 提问人:00****16
  • 发布时间:2018-04-17
For this part, assume today’s date is 15 August 2005.5 (a) Donald is aged 22, single, and about to finish his university education. He has plans to start up a business sellingcomputer games, and intends to start trading on 1 April 2006, making up accounts to 31 March annually.He believes that his business will generate cash (equal to taxable profits) of £47,500 in the first year. Heoriginally intended to operate as a sole trader, but he has recently discovered that as an alternative, he couldoperate through a company. He has been advised that if this is the case, he can take a maximum gross salaryof £42,648 out of the company.Required:(i) Advise Donald on the income tax (IT), national insurance (NIC) and corporation tax (CT) liabilities hewill incur for the year ended 31 March 2007 trading under each of the two alternative businessstructures (sole trade/company). Your advice should be supported by calculations of disposable incomefor both alternatives assuming that in the company case, he draws the maximum salary stated.(7 marks)
(ii) Assuming that Donald operates through a company, advise Donald on the corporation tax (CT) thatwould be payable for the year ended 31 March 2007 if he pays himself a gross salary of £31,000, plusa net dividend of £10,000, instead of a gross salary of £42,648. (4 marks)
(iii) Calculate the cash remaining in the company as a result of the salary and dividend payments made in(ii) above. (1 mark)
(b) Donald actually decided to operate as a sole trader. The first year’s results of his business were not as he hadhoped, and he made a trading loss of £8,000 in the year to 31 March 2007. However, trading is now improving,and Donald has sufficient orders to ensure that the business will make profits of at least £30,000 in the year to31 March 2008.In order to raise funds to support his business over the last 15 months, Donald has sold a painting which wasgiven to him on the death of his grandmother in January 1998. The probate value of the painting was £3,200,and Donald sold it for £8,084 (after deduction of 6% commission costs) in November 2006.He also sold other assets in the year of assessment 2006/07, realising further chargeable gains of £8,775 (afterindexation of £249 and taper relief of £975).Required:(i) Calculate the chargeable gain on the disposal of the painting in November 2006. (4 marks)



图形验证:看不清?点击更换 换一换
  • 49.8

    ¥75 每天只需0.6元
    3个月 推荐
  • 39.8

  • 99.8



  • 微信付款
  • 支付宝付款



恭 喜 您 获 得
扫 码 免 费 领 取
会 员 或 搜 题 次 数