Three brothers, Daniel, David and Derrick have been discussing their respective taxation affairs and how much they dislike paying tax. None of them are Scottish taxpayers.

Daniel's income for tax year 2023-24 consists of income from property of £52,770 and net debenture interest of £416.

David has an annual salary of £88,000. PAYE deducted from this salary was £27,800 for 2023-24. David paid 4% of his salary into an occupational pension scheme, with his employer contributing 6%. He also had the use of company car for the whole of the tax year. When new in March 2022, the car cost his employer £34,500 but it had a list price of £35,100. David contributed £6,000 towards the cost of the car. It has a diesel engine and CO2 emissions of 102g/km. The employer pays all running costs of the car (including all fuel) and David pays his employer £100 per month as a contribution towards private fuel. During 2023-24, David also received £515 in dividends.

Derrick has an annual salary of £58,270. PAYE deducted from this salary was £10,830 for 2023-24. He was given an interest-free loan from his employer of £12,000 on 6 June 2023 to fund a luxury cruise for his sixtieth birthday. Derrick repaid £8,000 of this loan in January 2024 and intends to pay off the remaining £4,000 in October 2024.

All three brothers are delighted that their parents are still alive, although both were born in 1934. The parents were married in September 1955. Their father has a private pension which amounts to about £35,000 per year and they both receive the state pension.

Required:

(a) Calculate the income tax payable by Daniel for 2023-24.

(b) Calculate the income tax payable by (or repayable to) David for 2023-24.

(c) Explain to David what changes he could make that would help him save tax.

(d) Calculate the income tax payable by (or repayable to) Derrick for 2023-24. You do not need to compute the loan interest using the daily method. Assume that the official rate of interest is 2.25% per annum.

(e) Explain to Derrick how he could have avoided paying tax on the interest-free loan.

(f) Calculate the total National Insurance contributions payable by both David and his employer for 2023-24.

(g) Explain how the married couple’s allowance will operate in the circumstances of the father and mother. You are not required to complete any calculations.