Samuel Goodfellow, the assistant manager of Arise plc has a basic salary in $2023-24$ of

$56,800.$ He also receives the following benefits from the company:

$($a$)$ He is provided with the use of a company house, which has an annual value of

$9,883$ and which costs his employer $325,000.$ Samuel makes no contribution

towards the cost of the house or towards its running costs, which cost the company

$8,768$ in $2023-24.$ The company also furnished the house at a cost of $42,400.$

Samuel$$s occupation of the house is not job$-$related.

$($b$)$ He is provided with a diesel$-$engine company car, which had a list price when new

of $46,000$ and has an emission rating of $128$g$/$km$.$ The company pays all running

costs including fuel.

$($c$)$ He is provided with a company loan of $48,000$ on which he is charged interest at

$0\mathrm{.}5\%$ per annum.

During $2023-24,$ Samuel invested the sum of $60,000$ into an Enterprise Investment

Scheme. His sister, who has just completed a tax course lamented that he should have

invested the $60,000$ in a Seed Enterprise Investment Scheme instead. Samuel also

received dividends of $10,240$ and ISA interest of $1,860$ during $2023-24.$

Required:

$($a$)$ Discuss the tax benefits of Enterprise Investment Scheme $($EIS$)$ and explain why the

Seed Enterprise Investment Scheme $($SEIS$)$ is more tax advantageous. $($Note: you

are NOT required to discuss the conditions which apply to EIS or SEIS$).$

$(5$ marks$)$

$($b$)$ Calculate Samuel$$s employment income $($including employment benefits$)$ for the tax

year $2023-24.($Assume that the official rate of interest is $2\mathrm{.}25\%).(8$ marks$)$

$($c$)$ Calculate Samuel$$s income tax liability for the tax year $2023-24.$ If any of his income

is not taxable, explain why this is the case.$(8$ marks$)$

$($d$)$ Calculate the class $1$ and class $1$A NIC in relation to Samuel$$s employment income.

$(4$ marks$)$

Total $(25$ marks$)$