Louise operates her small business as a sole trader. If she continues to trade as a sole trader, her total income tax liability and NIC for the tax year 2018/19 will be 7,263. However, Louise is considering incorporating her business on 6 April 2018. The estimated taxable total profits of the new limited company for the year ended 5 April 2019 will be 35,000 (before taking into account of any director's remuneration). Louise will pay herself gross director's remuneration of 18,000 and dividends of 6,000. The balance of the profits will remain undrawn within the new company. Her National insurance contributions in case of business as limited company for 2018/19 will be as follows: Employee Class 1 = 1,149 Employer Class 1 = 1,321 Page 27 of 34 Determine whether or not there will be an overall saving of tax and NICs for the year ended 5 April 2019 if Louise incorporates her business on 6 April 2018. Louise operates her small business as a sole trader. If she continues to trade as a sole trader, her total income tax liability and NIC for the tax year 2018/19 will be 7,263. However, Louise is considering incorporating her business on 6 April 2018. The estimated taxable total profits of the new limited company for the year ended 5 April 2019 will be 35,000 (before taking into account of any director's remuneration). Louise will pay herself gross director's remuneration of 18,000 and dividends of 6,000. The balance of the profits will remain undrawn within the new company. Her National insurance contributions in case of business as limited company for 2018/19 will be as follows: Employee Class 1 = 1,149 Employer Class 1 = 1,321 Page 27 of 34 Determine whether or not there will be an overall saving of tax and NICs for the year ended 5 April 2019 if Louise incorporates her business on 6 April 2018