uk taxation

This scenario relates to three requirements. For the purposes of this question you should assume that today's date is 15 March 2021. Kimone is employed by Fast Delivery plc as a delivery driver and is paid a salary of 44,000 per year. She contributes 5% of her gross salary into Fast Delivery plc's occupational pension scheme. As an alternative to being employed, Fast Delivery plc have offered Kimone the opportunity to provide delivery services to the company on a self-employed basis. The details of the proposed arrangement for the year ended 5 April 2022 are as follows: (1) Kimone will commence being self-employed on 6 April 2021. (2) Her income from Fast Delivery plc is expected to be 47,000. (3) Kimone will also provide delivery services to other clients. Her income from these contracts is expected to be 13,000. (4) Kimone will lease a delivery van and 100% of the mileage will be for business purposes. The cost of leasing and running the van will be 4,400. (5) When she is unavailable, Kimone will have to provide a replacement driver to deliver for Fast Delivery plc. This will cost her 2,$00. (6) Kimone will contribute 3,000 (gross) into a personal pension scheme during the tax year 2021/22. This will provide her with the same benefits as the occupational pension scheme provided by Fast Delivery plc. Required: (a) Assuming that Kimone does not accept the offer from Fast Delivery plc and continues to be employed by the company, calculate her income tax and class I NIC contracts is expected to be 13,000. (4) Kimone will lease a delivery van and 100% of the mileage will be for business purposes. The cost of leasing and running the van will be 4,400. (5) When she is unavailable, Kimone will have to provide a replacement driver to deliver for Fast Delivery plc. This will cost her 2,800. (6) Kimone will contribute 3,000 (gross) into a personal pension scheme during the tax year 2021/22. This will provide her with the same benefits as the occupational pension scheme provided by Fast Delivery plc. Required: (a) Assuming that Kimone does not accept the offer from Fast Delivery plc and continues to be employed by the company, calculate her income tax and class 1 NIC liability for the tax year 2021/22. (5 marks) (b) Assuming that Kimone accepts the offer to provide delivery services to Fast Delivery plc on a self-employed basis from 6 April 2018 onwards, calculate her income tax, class 2 NIC and class 4 NIC liabilities for the tax year 2021/22. (6 marks) (c) Advise Kimone as to whether it will be beneficial to accept the offer to provide delivery services to Fast Delivery plc on a self-employed basis. Your answer should be supported by a calculation of the amount by which Kimone's income for the tax year 2021/22 (net of outgoings, income tax and NIC) will increase or decrease if she accepts the offer. (4 marks) This scenario relates to three requirements. For the purposes of this question you should assume that today's date is 15 March 2021. Kimone is employed by Fast Delivery plc as a delivery driver and is paid a salary of 44,000 per year. She contributes 5% of her gross salary into Fast Delivery plc's occupational pension scheme. As an alternative to being employed, Fast Delivery plc have offered Kimone the opportunity to provide delivery services to the company on a self-employed basis. The details of the proposed arrangement for the year ended 5 April 2022 are as follows: (1) Kimone will commence being self-employed on 6 April 2021. (2) Her income from Fast Delivery plc is expected to be 47,000. (3) Kimone will also provide delivery services to other clients. Her income from these contracts is expected to be 13,000. (4) Kimone will lease a delivery van and 100% of the mileage will be for business purposes. The cost of leasing and running the van will be 4,400. (5) When she is unavailable, Kimone will have to provide a replacement driver to deliver for Fast Delivery plc. This will cost her 2,$00. (6) Kimone will contribute 3,000 (gross) into a personal pension scheme during the tax year 2021/22. This will provide her with the same benefits as the occupational pension scheme provided by Fast Delivery plc. Required: (a) Assuming that Kimone does not accept the offer from Fast Delivery plc and continues to be employed by the company, calculate her income tax and class I NIC contracts is expected to be 13,000. (4) Kimone will lease a delivery van and 100% of the mileage will be for business purposes. The cost of leasing and running the van will be 4,400. (5) When she is unavailable, Kimone will have to provide a replacement driver to deliver for Fast Delivery plc. This will cost her 2,800. (6) Kimone will contribute 3,000 (gross) into a personal pension scheme during the tax year 2021/22. This will provide her with the same benefits as the occupational pension scheme provided by Fast Delivery plc. Required: (a) Assuming that Kimone does not accept the offer from Fast Delivery plc and continues to be employed by the company, calculate her income tax and class 1 NIC liability for the tax year 2021/22. (5 marks) (b) Assuming that Kimone accepts the offer to provide delivery services to Fast Delivery plc on a self-employed basis from 6 April 2018 onwards, calculate her income tax, class 2 NIC and class 4 NIC liabilities for the tax year 2021/22. (6 marks) (c) Advise Kimone as to whether it will be beneficial to accept the offer to provide delivery services to Fast Delivery plc on a self-employed basis. Your answer should be supported by a calculation of the amount by which Kimone's income for the tax year 2021/22 (net of outgoings, income tax and NIC) will increase or decrease if she accepts the offer. (4 marks)