Sara has accepted a part time job with Gravel plc as a marketing executive, starting on 6th April 2021.

Sara receives an annual salary of 27,000 pounds and private health insurance. The insurance policy will cost Grvel 750 pounds per year, but would cost Sara 1,500 pounds if, were she to have taken out a policy in her own name. In addition, she agreed to areduction of 300 pounds in her annual salary in return for a provision of a new smart phone and tablet. The provision of the phone and tablet package will cost Gravel plc 220 pounds per year but would cost Sara 400 pounds per year.

She has also started an online business.

Date of commencement is 1 March 2020

Tax adjusted trading profits for recent periods of account:

Period ended 31 December 2020 14000 pounds

Period ended 31 December 2021 18500 pounds

Period ended 31 December 2022 38000 pounds

Advise Sara on the tax issues for her new job and commencement of her business.