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Question 5b ii
(b) Horner:
– Horner owns all of the shares of Otmar Ltd.
– All of the income of Otmar Ltd is subject to the personal service company (IR 35) rules.
– Budgeted figures for Otmar Ltd for the year ending 5 April 2014 are set out below. Where applicable, these amounts are stated exclusive of value added tax (VAT).
| £ | |
|---|---|
| Income in respect of relevant engagements carried out by Horner | 85,000 |
| Costs of administering the company | 3,900 |
| Horner’s annual salary | 50,000 |
| Dividend paid to Horner | 15,000 |
| Contributions paid into an occupational pension scheme in respect of Horner | 2,000 |
Required:
(ii) Calculate the deemed employment income of Horner for the year ending 5 April 2014. (4 marks)