1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
fgiga [73]
2 years ago
9

Gloria works as a freelance software developer with Ticki-Tacker Limited, a social media firm based in the city of London. She h

as two options for the purpose of personal income tax assessment. She may be added to the payroll of Ticki-Tacker Limited under the PAYE system or allowed to be treated as a self-employed individual. OPTION 1: Gloria under the PAYE system She will be placed on an annual salary of £50,000, and she would be required travel to work from Mondays to Fridays throughout the year via train, except for four weeks in a year when she will be on annual leave. The annual train ticket costs £2,400. OPTION 2: Gloria as a self-employed Gloria is allowed to invoice Ticki-Tacker Limited, an annual fee of £50,000. This work involves travelling to clients’ offices for a total of 5,200 miles annually in her own car. This is estimated to cost 39p/mile. Assume that Gloria’s annual accounts cover April 2020 to March 2021. REQUIRED: a. Calculate the relevant income tax and National Insurance Contribution liability under each of the two options identified. b. Calculate the disposable income (after all deductions) under the two options identified. c. Apart from (a) and (b) above, analyse any other factors that you think Gloria may take into consideration (from a taxation perspective) in arriving at the best option.
Business
1 answer:
Tanya [424]2 years ago
5 0

a. The relevant income tax and National Insurance Contribution liability are as follows:

                                                     PAYE System   Self-Employed

Income tax (20%)                             (£8,378)                £8,731

National Insurance Contribution      (5,712)                (4,317)

Total income tax and NIC liability  £14,090             £13,048

b. The disposable income after all known deductions under the two options are:

                                                  PAYE System   Self-Employed

Disposable income                       £33,510             £34,924

c. The other allowable deductions will need to be taken into consideration so that Gloria can arrive at the best option.

Data and Calculations:

                                                    PAYE System   Self-Employed

Earnings per year                            £50,000          £50,000

Allowable expenses:

Travel expenses                                (2,400)              (2,028) (£0.39 x 5,200)

Net Earnings                                   £47,600             £47,972

National Insurance Contribution     (5,712)               (4,317)

                                                (£47,600 x 12%)       (£47,972 x 9%)

Taxable income                              £41,888             £43,655

Income tax (20%)                            (£8,378)               £8,731

Disposable income                        £33,510             £34,924

Learn more: brainly.com/question/14531658

You might be interested in
A memo is a copy of a document transmitted via phone line using a facsimile machine.
LiRa [457]

Answer:

Yes, it is very true: I don't know just trying

6 0
2 years ago
The music market study conducted by Matthew Salganik, Peter Dodds, and Duncan Watts demonstrated that group influence shapes: a.
ExtremeBDS [4]

Answer:

b.

Explanation:

According to the music market study conducted by Matthew Salganik, Peter Dodds, and Duncan Watts demonstrated that group influence shapes our personal taste and decisions regarding music. Just like in high school, groups have the ability to influence other peoples decisions. Especially those who look to those groups as superior. Which was demonstrated by the study mentioned in the question in regards to music.

5 0
3 years ago
Which symbol on a regulatory marker is used to mark a swimming area?
Damm [24]
Orange crossed diamond symbol on a regulatory marker is used to mark a swimming area. This symbol also means for boats to keep out of the area leaving a part of the sea for the swimming area. This symbol also made in a white buoy with black lettered writing "SWIM AREA". This symbol is a common boat terminology which is known worldwide to increase safety for people who do activity nearby or on the sea and beach<span>.</span>
7 0
3 years ago
Greg had selected 8 intervals total to service. He logged in on time for each interval, but ended up logging out 5
inysia [295]

Answer:

The resulting CA percentage for the week to the nearest number is 94%

Explanation:  

CA refers to Commitment Adherence.

Commitment Adherence (CA) is a way to calculate the reliability of an employee in relation to how much time they put into their work.

Put differently, it is a mathematical comparison between how much time you stated that you were going to work versus the actual amount worked. This concept is prevalent with people who use clock-in and clock-out system to measure productivity.

Step 1

The formula for calculating Commitment Adherence (CA) is:

(Serviced Minutes - Excused Non-Serviced Minutes) / (Posted Minutes + Released Minutes)

When you log out at about 5 minutes early it translates to 83% because each interval is 30 minutes. So 23/30 = 83%

Step 2

There are 8 intervals. 5 of them are 100% each. Thus total intervals for the week equal

(5*100%)+(3*83%) =

7.49 *30 = 224.7

Total number of intervals selected =

8*30 = 240

Therefore commitment adherence = 224.7/240

= 0.94%

Cheers!

6 0
3 years ago
Although many factors affect the value of real property, what is the primary driver in determining the value of real property?
garri49 [273]

Answer:

Supply and Demand

Explanation:

Although there are many factors which are given below:

1. Location of the real property

2. Supply and demand

3. The rate of interest

4. Population size

5. Market trends of property, etc

But the primary driver is supply and demand because if the demand of the property rise than the supply, the price of real property is rising whereas if the supply of the property is rise than the demand, the price of real property is declining

5 0
2 years ago
Other questions:
  • Biz Solutions has 12 call centers worldwide handling customer service issues for a variety of companies. The firm is considering
    12·1 answer
  • The economic significance of successful ticket scalping (scalpers sell tickets at higher than official prices) at baseball games
    12·1 answer
  • At a price of $15 each, marta buys 4 books per month. when the price increases to $20, marta buys 3 books per month. luz says th
    5·1 answer
  • Which of the following statements is FALSE? A. Individual investors should be involved in choosing a mutual fund because they kn
    12·1 answer
  • The ability of a marketer to identify customers before they make a purchase is called
    10·1 answer
  • Almost all financial theory and decision models assume that the financial markets are efficient. The informational efficiency of
    5·1 answer
  • A stock has had returns of 14 percent, 32 percent, 15 percent, −20 percent, 32 percent, and −7 percent over the last six years.
    5·1 answer
  • Whos the richeist family
    7·1 answer
  • Mario is a skilled jet flyer that was recently hired by Meagan who is starting an airline business that allows travelers to trav
    9·1 answer
  • Most e-commerce actually takes place between businesses. what is this called?
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!