18 Question 18 TIFFANY (15 marks) You are a trainee Chartered Certified Accountant and your firm is dealing with the tax affairs of Tifany. Tiffany recently inherited a Rolls Royce and following installation of new leather seat coverings, has decided to start allowing friends to use it as their wedding car. She has been asking for a 100 contribution for use of the car & the car has currently been used only on six occasions over the last six months. Tiffany has started advertising the car's availability in local shops and on local Facebook groups. She believes she can start charging about 500 per use of the car. In preparation for a client meeting with Tiffany you have been asked by your manager to prepare notes on the tax treatment of Tiffany's profits from her wedding car service. Tiffany works full time as an estate agent. a. You are required to draft briefing notes for your manager: considering whether or not Tiffany will be treated as carrying on a trade according to the six 'Badges of Trade advising whether Tiffany's profits from her wedding car service will be liable to income tax and National Insurance (8 marks) No calculations are required. 18 Question 18 TIFFANY (15 marks) You are a trainee Chartered Certified Accountant and your firm is dealing with the tax affairs of Tifany. Tiffany recently inherited a Rolls Royce and following installation of new leather seat coverings, has decided to start allowing friends to use it as their wedding car. She has been asking for a 100 contribution for use of the car & the car has currently been used only on six occasions over the last six months. Tiffany has started advertising the car's availability in local shops and on local Facebook groups. She believes she can start charging about 500 per use of the car. In preparation for a client meeting with Tiffany you have been asked by your manager to prepare notes on the tax treatment of Tiffany's profits from her wedding car service. Tiffany works full time as an estate agent. a. You are required to draft briefing notes for your manager: considering whether or not Tiffany will be treated as carrying on a trade according to the six 'Badges of Trade advising whether Tiffany's profits from her wedding car service will be liable to income tax and National Insurance (8 marks) No calculations are required