Dolores is employed as a CEO of a small UK retail company. Apart from her annual salary of £180,000, she received the following employment benefits during the year ended 5 April 2021:

• Use of a pre 6th April 2020 petrol-driven company car (including private use). The car had a list price of £60,000 and CO2 emissions of 95 g/km. The company also provided Dolores with all fuel for the car. Dolores had use of this car for only 10 months in the tax year. For the other 2 months she used her own car, travelled 1,200 miles on employment business and was paid 35p per mile by the employer for these miles.
• The company purchased Dolores a state-of-the-art entertainment system for private use at her home for £25,000 on 6th April 2019. Having been given the use of it for the whole of the 2019/20 tax year she was offered (and accepted) the chance to purchase the system for £12,000 (its market value) on 6th April 2020 (the first day of the 2020/21 tax tear).
• The employer advanced Dolores £12,000 on 6 April 2020 in the form of a no-interest loan. The full repayment of £12,000 is due to be made on 5th April 2022. The official rate of interest is 2.25%.
• The employer paid £800 for Dolores private medical cover. Had Dolores purchased the same cover herself the cost would have been £950.”

“Dolores made the following employment payments:

• 3% of her salary to the company’s registered occupational pension fund.
• Dolores paid her own professional subscription during the year of £500 – the subscription is job-related.”

 “Rental income

Dolores owns a property which during the year ended 5 April 2021 was let out – it was furnished and commanded an annual rent of £15,000. During the year she incurred the following expenses on the property (all invoiced in the year):

• Repairs                                        £600 (paid after the year end.)
• Insurance                                    £480 (relates to year ended 30 June 2021 – the previous year’s premium was £420)
• Replacement of furniture         £300
• Mortgage interest                      £4,000”

“Dolores also let out a room in her own house to a friend and during the tax year her friend paid her £800 per month for her room. The expenses relating to her friend’s use of the house amount to £5,000. The arrangement qualifies under the “rent-a–room” scheme.”

“Dolores has opted to do her rental accounts on the accrual’s basis.”

“Required

a.            Calculate Dolores net employment income for the year ended 5 April 2021.

b.            Calculate Dolores property business income for the year ended 5 April 2021.

c.             There are various classes of national insurance payable by individuals. To whom and how does National Insurance apply and is National Insurance an insurance or tax?                                                                     

Do not write more than 350 words on this part.