Mr. Melon Tusk (UK resident taxpayer) is a website designer and maintenance expert with two different sources of income. He works part- time as an IT consultant for a small number of clients, on a project management basis. A separate contract is drawn up for each project, specifying the deadline, expected output and the fee to be paid. Melon uses his own laptop when necessary and works from home most of the time. Melon also works two days a week for a nearby Higher education collage where his wife (see below) works. He is given an office at the college, where he is required to be present between 9am and 5pm to work with the in-house IT team. In addition, the collage provides 10 fully paid days off in the year and allows Stephen to invoice the collage for the day even when he is sick. Melons wife, Sue, is an internal auditor who was born in 1979 and joined the collage on 6 June 2020. Her gross pay for 2020-21 was 49,800 and income tax of 11,950 was deducted via PAYE. She is provided with a motor car for both business (to travel between the different campuses) and private motoring. Details of the cars provided during 2020-21 were as follows: Make List price Emissions Fuel 6 June 2020 to 5 October 2020 Nissan 16,500 g/km 78 Diesel 6 October 2020 to 5 April 2021 Tesla 52,400 0 Electric Sue contributed 50 per month for private use of the Nissan car which does not meet the Real Driving Emissions Step 2 standard. Her employer paid 500 on fuel and other running costs for Nissan car. She also reimbursed her employer 200 for the private fuel used by the motor car. Both cars were registered before 6 April 2020. On 6 July 2020, the collage lent Sue 27,000 at an interest rate of 1.25% per annum. She repaid 9,000 of the loan on 6 February 2021. Sue is provided with a mobile telephone and can use this telephone for both business and private calls. The collage did not have to pay for the telephone itself but paid call charges of 319 during the year (of which 182 related to private calls). Sue's other income for 2020-21 consisted of gross pay from her previous employer of 16,772 (PAYE 2,301), dividends received of 3,400 and ISA interest of 420. She is not a Scottish taxpayer. Page 5 of 6 Required: a. Discuss and apply the criteria which may be used to determine whether Melon Tusk should be regarded as employed or self-employed. (8 marks) b. Prepare an income tax computation for Sue for tax year 2020-21. If any of her is not taxable, explain why this is the case. (Assume that the official rate of interest is 2.25%). (17 marks) (Total marks:25)