22 Sasha Shah Sasha Shah is a computer programmer. Until 5 April 2013 she was employed by Net...

22 Sasha Shah

Sasha Shah is a computer programmer. Until 5 April 2013 she was employed by Net Computers plc, but since then has worked independently from home. Sasha\'s income for the year ended 5 April 2014 is £60,000. All of this relates to work done for Net Computers plc. Her expenditure for the year ended 5 April 2014 is as follows:

(1) The business proportion of light, heat and telephone for Sasha\'s home is £880.

(2) Computer equipment was purchased on 6 April 2013 for £4,000.

(3) A motor car was purchased on 6 April 2013 for £10,000 with CO2 of 115g/km. Motor expenses for the year ended 5 April 2014 amount to £3,500, of which 40% relate to journeys between home and the premises of Net Computers plc. The other 60% relate to private mileage.

Required

(a) (i) Calculate the amount of taxable trading profits if Sasha is treated as self-employed during

2013/14.

(ii) Calculate the amount of Sasha\'s taxable earnings if she is treated as an employee during

2013/14.

(b) (i) Calculate Sasha\'s liability to Class 2 and Class 4 NIC if she is treated as self-employed during 2013/14.

(ii) Calculate Sasha\'s liability to Class 1 NIC if she is treated as an employee during 2013/14.