Study the scenario and complete the questions that follow:

You are a junior tax clerk at a firm of tax practitioners and your manager has asked you to attend to the

following email:

From: Kayla Cook

To: FirstInTax

Subject: Tax assistance required

Good day and thank you so much for your offer to help us sort out our tax affairs. My husband and I are

not financial people and we don't really know much about tax, so we are very grateful for your assistance.

Len and I are married out of community of property and we have three children aged $4,7$ and $11.$

My husband, Len, is a marketing executive at a large cellphone company. Len earns a fixed monthly

salary and he is a member of his employer$$s pension fund and medical aid fund. Len$$s employment

contract states that he must pay $7,5\%$ of his monthly salary to the pension fund and his employer will pay

$10\%$ of his monthly salary to the fund. Len$$s employer pays the medical aid contributions every month.

Len usually pays our medical expenses although sometimes I pay if I take one of our children to the

doctor and I don$$t have his credit card.

Len has the full use of a motor car owned by his employer. It is a Hyundai Tucson that cost R$899000$

$($including VAT and a $3-$year full maintenance plan$)$ when his employer purchased it in November $2021.$

Len does not have to pay anything for the use of the car. Len also receives an entertainment allowance of

R$1000$ per month, which he uses to entertain clients, although he is not required to keep any of his slips

or proof of expenses.

In July $2023,$ Len installed a solar system on our house. The total cost of the solar installation was R$220$

$000($including VAT$),$ which included the cost of eight $275$W solar panels that cost R$5000($including VAT$)$

each.

Len is very good at managing our finances and he has some savings from which he earns interest, as

well as a small share portfolio from which he earns dividends. He didn$$t sell any shares during this year.

I am a professional chef and I have my own catering business, although I am not registered as a VAT

vendor. I provide hearty food and platters for special events, such as for people who entertain at home

and for office functions. I employ a part$-$time child minder to look after the children when I am busy

running my business.

I work from home and I have a room in our house that I use specifically for my trade. I also sometimes

use my home kitchen when I need to cook hot food but usually, I use my special preparation room that

I've set up with two large preparation tables, a dedicated fridge and catering equipment such as knives,

plates, and so on$.$ No$-$one else is allowed to use my preparation room. The total floor area of our house is

$250$ square metres. The area of my preparation room is $12,5$ square metres and the area of our kitchen is

$16$ square metres.

In the table below, I have provided details of Len's salary, income and expenses. I've also provided a

separate list of my income, expenses relating to my catering business, and some of my other expenses,

which I hope I can claim as tax deductions as well. If any of my expenses won$$t be allowed as deductions,

please can you briefly explain the reasons to me$?$

Please would you tell me how much tax my husband and I owe for this year? I think Len won$$t have to pay

in any tax as his employer withholds employees$$ tax every month, but I hope you can confirm that for us$.$

R

Len$$s income and expenses for the year ended $29$ February $2024$:

Salary $($R$80000\backslash$times $12)960000$

Year$-$end bonus paid in December $202385000$

Use of company vehicle $0$

Entertainment allowance $($R$1000\backslash$times $12)12000$

Pension fund contributions paid by Len $($R$6000\backslash$times $12)72000$

Pension fund contributions paid by employer $($R$8000\backslash$times $12)96000$

Medical aid contributions paid by employer $(12000\backslash$times $12)144000$

Medical expenses paid by Len and not reimbursed by the medical aid fund $3800$

Interest from SA bank savings account $23145$

Interest from tax$-$free savings account $3940$

Dividends from SA companies $13200$

Dividends from foreign companies listed on the JSE $4150$

Donation to the NSPCA $($s$18$A certificate obtained$)2500$

Employees$$ tax $($PAYE$)$ withheld by Len$$s employer $468513$

Note $1$: Assume that Binding General Ruling No$.7$ allows these assets to be written off over $5$ years.

Required:

a$.$ Calculate Len$$s normal tax liability for the year ended $29$ February $2024$