*27.5 Glenda has been self-employed for many years and prepares accounts to 31 March each year. Her adjusted profits (after deduction of capital allowances) are currently running at approximately 80,000 per annum. She has no other income for tax purposes and she is not a Scottish taxpayer. Glenda is now considering incorporation and she would like to see a comparison of her current tax liability (including NICs) and the liability that would arise if she traded as a small company, with herself as the sole shareholder and director. (a) Assuming that Glenda continues to operate as a sole trader and that her adjusted trading profit for the year to 31 March 2022 is 80,000, calculate the total liability to income tax and NICs for tax year 2021-22. (b) Estimate the total liability to income tax, NICs and corporation tax that would arise for the year if Glenda formed a company and extracted 60,000 of the company's profit for the year either: (i) as a salary (so that her salary plus secondary NICs would total 60,000), or (ii) as a 60,000 dividend. (c) In case (b), how would the total liability be affected if Glenda took 8,840 in the form of a salary and the remainder of the 60,000 as a dividend? Assume for the sake of simplicity that all director's remuneration and dividends are taken during tax year 2021-22. Perform all calculations to the nearest .