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| Mark Kett On 31 December 2012 Mark Kett ceased trading as a marketing consultant. He had been self-employed since 6 April 2001, and had always made his accounts up to 5 April. On 1 January 20 Mark commenced employment as the marketing manager of Sleep-Easy plc. The company runs a hotel. The following information is available for the tax year 2012–13: Self-employment (1) Mark’s tax adjusted trading profit for the nine-month period ended 31 December 2012 is £19,200. This figure is before taking account of capital allowances. (2) The tax written down values for capital allowances purposes at 6 April 2012 were as follows:  The expensive motor car was used by Mark, and 40% of the mileage was for private purposes. (3) On 15 June 2012 Mark had purchased office furniture for £1,900. All of the items included in the general pool were sold for £18,800 on 31 December 2012. On the cessation of trading Mark personally retained the expensive motor car. Its value on 31 December 2012 was £11,800. Employment (1) Mark is paid a salary of £3,250 (gross) per month by Sleep-Easy plc, from which income tax of £620 per month has been deducted under PAYE. (2) During the period from 1 January 2013 to 5 April 2013 Mark used his private motor car for business purposes. He drove 2,500 miles in the performance of his duties for Sleep-Easy plc, for which the company paid an allowance of 16 pence per mile. The relevant HM Revenue & Customs authorised mileage rate to be used as the basis of an expense claim is 40 pence per mile. (3) On 1 January 2013 Sleep-Easy plc provided Mark with an interest free loan of £80,000 so that he could purchase a new main residence. (4) During the period from 1 January 2013 to 5 April 2013 Mark was provided with free meals in Sleep-Easy plc’s staff canteen. The total cost of these meals to the company was £400. Property income (1) Mark let out a furnished property throughout the tax year 2012-13. He received gross rents of £8,600, 5% of which was paid to a letting agency. During December 2006 Mark spent £540 on replacing dilapidated furniture and furnishings. (2) From 6 April 2012 to 31 December 2012 Mark let out a spare room in his main residence, receiving rent of £350 per month. Investment income (1) During the tax year 2012–13 Mark received dividends of £2,880, interest from government stocks (gilts) of £1,900, and interest of £430 from an individual savings account (ISA). These were the actual cash amounts received. (2) On 3 May 2012 Mark received a premium bond prize of £100. Other information (1) On 15 December 2012 Mark made a gift aid donation of £780 (net) to a national charity. (2) Mark’s payments on account of income tax in respect of the tax year 2012–13 totalled £11,381. Required: (a) Compute the income tax payable by Mark for the tax year 2012–13, and the balancing payment or repayment that will be due for the year. |