This scenario relates to two requirements. You should assume that today's date is 25 March 2022. Bertie is the managing director of, and 100% shareholder in, Rebite Ltd. For the past few years, Bertie has taken a high level of director's remuneration from Rebite Ltd to fund his personal pension contributions and the lease payments on his private car. However, Bertie has now realised that these are not the most tax beneficial arrangements, and is therefore considering more beneficial alternative arrangements. Existing arrangements If Bertie continues with the existing arrangements for the tax year 2022-23: Rebite Ltd will pay Berte gross director's remuneration of 75,000. Bertie will use his private car for business mileage, with Rebite Ltd paying a mileage allowance of 45 pence per mile for business journeys. Bertie will drive 10,000 miles in the performance of his duties for Rebite Ltd during the tax year 2022-23. (3) Bertie will make personal pension contributions of 25,000 (gross). Bertie does not have any other income. After taking account of the above, Rebite Ltd's corporation tax liability for the year ended 5 April 2023 will be 9,611. Beneficial arrangements If Bertie adopts the beneficial arrangements throughout the tax year 2022-23:

(a) Calculate the reduction in Bertie's income tax and employee class 1 national insurance contributions (NIC) for the tax year 2022-23 If the beneficial arrangements are implemented throughout the year, rather than the existing arrangements. Note: Where relevant, you are expected to produce full income tax and employee class 1 NIC computations.