Ronaldo is employed and also self-employed. Ronaldo has tried to prepare his own income tax computation for the tax year 2020/21, but he has found it more difficult than expected. Although the sections which Ronaldo has completed are correct, there are a significant number of omissions. The omissions are marked as outstanding (O/S). The party completed income tax computation is as follows: RONALDO INCOME TAX COMPUTATION 2020/21 Note Trading income 1 O/S Employment income 70,065 Property business profit 2 O/S Building society interest 1,260 Dividends O/S O/S Personal allowance (12,500) Taxable income O/S Note 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 O/S Tax suffered at source PAYE (11,513) Income tax payable O/S Notes 1. Trading profit Ronaldo commenced self-employment on 1 January 2020. He had a tax adjusted trading profits of 3,840 and the four-month period ended 30 April 2020, and 12,060 for the year ended 30 April 2021. These figures are before taking account of capital allowances. The only item of plant and machinery owned by Ronaldo 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 Ronaldo is for private journeys. Page 12 of 18 [1914] 2. Property business profit Ronaldo owns a freehold shop. The 10-year-old shop was purchased on 1 October 2020, and during October 2020 Ronaldo 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 2020, the property was let to a tenant, with Ronald 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 2020 to 5 April 2021 Ronaldo received five rental payments. Due to a fire, 8600 was spent on replacing the roof of the shop during February 2021. Only 8200 of this was paid for by Ronaldos property insurance. Ronaldo paid insurance of 156 in respect of the property. This was paid on 1 October 2020 and is for the year ended 30 September 2021. Other information Ronaldo did not make any personal pension contributions during the tax year 2020/21. He has never been a member of a pension scheme. Required:

(a) Calculate the income tax payable by Ronaldo for the tax year 2020/21

(b) Advise Ronaldo why the maximum gross amount of tax relievable personal pension scheme contribution which he could have made for the tax year 2020/21 is 40000, and the method by which tax relief would have been given if he had made this amount of contribution.

(c) Discuss the method of loss relief available for Sole traders like Ronaldo.