Joyce was working as a nurse in a long-established local practice in Devon. She is quite happy there and she even works for an NGO Smiling Face as a nurse supporting the eldest people at their own homes. However, she was recently offered a new job at a company called Agincare Home & Residential Nursing Ltd in Bristol. She left the previous job on 5 April 2021 and started his new job the following day on the 6 April 2021. Her annual salary is 110,000 (gross). Agincare Home & Residential Nursing Ltd will make contributions to its approved pension scheme of 6% per annum, while Joyce will make employee contributions of 5% per annum. There is a monthly PAYE deduction of 3,000 from Joyces salary. In addition to the above Joyce is entitled to the following benefits: 1- The company has provided Joyce with a diesel BMW 1 Series company car. It has CO2 emissions of 61g/km and its list price was 21,000 when first registered on 1 April 2022. Optional extras which Joyce asked the company to add to the car totalled 800. Joyces local garage was offering the same car (with extras) at a cost of 20,500.

2- The company have agreed to meet the cost of all of Joyces fuel (for both private and business use).

3- The car was made available from 6 April 2021.

4- In addition, the company provided Joyce with a laptop, which she uses for both business and private purposes. She estimates that her private use will be approximately 50%. The laptop cost 950 when she was provided with it on 1 June 2021.

5- Joyce was provided with an iPhone which she uses principally for business. The contract cost is 45 per month, and the phone cost 650. She has had use of the iPhone since the first day of her employment.

6- Joyce was invited by Agincare Home & Residential Nursing Ltd to attend a conference in Berlin in November. Her partner, Aref, is also allowed to join. Travel and expenses met by the company amounted to 850 each.

In the year 2021/22 she received the following amounts:

UK dividends 20,000

Bank interest 800

Interest on ISA account. 1,500

Premium bond winnings (received in May 2022) 1000

Aref, Joyces partner, has been studying at Arden University and is trying to prepare his own income tax computation for 2021/22 but he is struggling and there are a few omissions marked as outstanding (O/S). The income tax computation is as follow: Trading income O/S

Employment income 70,065

Property business profit O/S

Building society interest 1,260

Dividends O/S Total : O/S

Personal allowance (12,500)

Taxable income O/S

Income tax Non-savings income: 37,500 @ 20% 7,500

Non-savings income: O/S @ 40% O/S

Savings income: 500 @ 0% 0

Savings income: O/S @ 40% O/S

Dividend income: O/S @ 0% 0

Dividend income: 800 @ 32.5% 260 . Income tax liability Total : O/S

Tax suffered at source PAYE (11,513)

Income tax payable O/S

Notes 1. Trading profit Aref commenced self-employment on 1 January 2021. He had tax adjusted trading profits of 3,840 for the four-month trading period ending 30 April 2021, and 12,060 for the year ended 30 April 2022. These figures are before taking account of capital allowances. The only item of plant and machinery owned by Aref is his motor car, which cost 24,000 on 1 September 2020. The motor car has a CO2 emission rate of 122grams per kilometre and 70% of the mileage driven by Aref is for private journeys. 2. Property business profit Aref also owns a freehold shop. The 10-year-old shop was purchased on 1 October 2021, and during October 2021 Aref spent 8,400 replacing the buildings roof. The shop was not usable until this was carried out and this was represented by a reduced purchase price. On 1 December 2021, the property was let to a tenant, with Aref receiving a premium of 12,000 for the grant of a 30-year lease. The monthly rent is 768 payable in advance and during the period 1 December 2021 to 5 April 2022 Aref received five rental payments. Due to a fire, 8600 was spent on replacing the roof of the shop during February 2022. Only 8200 of this was paid for by Arefs property insurance. Aref paid insurance of 156 in respect of the property. This was paid on 1 October 2021 and is for the year ended 30 September 2022.

Required: 1- Calculate the income tax payable by Aref for the tax year 2020/21 .

2- Discuss the method of loss relief available for Sole traders like Aref