Calculate the income tax and all of the national insurance consequences of the employment opportunity Custom Essay

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1. Calculate the income tax and all of the national insurance consequences of the employment
opportunity. This will require you to:
a. Calculate the value of any benefits in kind and allowable deductions
b. If any benefits are not taxable, to explicitly state which and why not
2. Calculate the income tax and national insurance consequences of the self-employment
opportunity. This will require you to:
a. Adjust the projected net profit for non-deductible expenses, stating clearly why
these are not allowable for tax purposes.
b. Calculate capital allowances on the motor vehicle and furniture
c. Calculate the deduction available in respect of the lease premium payment
3. Prepare a memorandum offering advice to Graham based on your calculations. This should
include:
a. Any further tax considerations not included in your calculations
b. Any non-tax considerations that you consider to be relevant to Graham’s decision
c. Consider and explain which of the two alternatives you consider to be financially
better, including a comparison of his net income taking account of his tax, Nic,
pension contributions and any other items that you consider should be adjusted in
making a reasonable comparison.
d. Any uncertainties in your advice, including a list of further information you feel you
require

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