Chris Lewis is a Fashion designer who started working for Delicate-Designs Ltd on 6 April 2021.

The following information is available in respect of the year ended 5 April 2022:

• Chris received an income of 60,000 from Delicate-Designs Ltd. He is paid a fixed fee for each contract that he works on, and each contract lasts an average of two weeks.

• Chris is under no obligation to accept any of the contracts offered; he carries out the work under his own control. He is obliged to do the work personally.
• Chris works from home and never visits the premises of Delicate-Designs Ltd. He uses one room of his five-room private residence exclusively for business purposes. The total running costs of the house for the year were 5,000.

• Chriss telephone bills are 600 per quarter. This is 300 per quarter higher than they were prior to the commencement of his working from home.

• Chris is required to provide his own equipment. He purchased a computer for 1,800 on 6 April 2021.

• Chris was born on 22 June 1959 and had the following other sources of income for 2021/22

Dividend income	8000
Building society interest received	5000
National lottery winnings	10,000

Required:

1. Discuss those factors that indicate that Chris should be treated as self-employed rather than as an employee in relation to his work for Delicate-Designs Ltd. You should confine your answer to the information given in the question.

(6 marks)

2. Calculate Chriss income tax liability and his Class 2 and Class 4 National Insurance Contributions for 2021/22, if he is treated as self-employed in respect of his work for Delicate designs limited.

(19 marks)