Case Study: 1 (10 Marks)

Respond to the given email:

15th May, 2020,

Chester

Dear IbriCT Students,

On a detailed enquiry with my friends, I could able to locate your email id. As you have good knowledge of UK tax laws, kindly help me in filing my tax returns for the year 2018/19, with a clear presentation of taxable income, tax liability and tax payable in it.

Let me introduce myself to you. My name is Mr. Jacob and I am working as a full-time science teacherin Belfast boarding school of United Kingdom. I am earning an annual salary of 42,000 and contributes toward the employment related pension scheme of 375 per month and an annual deduction of 8,100 towards PAYE (Pay As You Earn) scheme is also charged on my earning. In the current year, I contributed an amount of 9,500 towards Gift Aid Donation. I also have most of my savings in a fixed deposit with HSBC Bank. I received an amount of 15,500 as interest on such deposits for this tax year. I also have some of my investment in Government gilt edge securities for which I realized an amount of 3,800 as interest in the current tax year.

Kindly, send me a calculation with above information, at the earliest.

With Kind Regards,

Mr. Jacob, Science Teacher,

Belfast Boarding School, Belfast, UK.