问答题 (a) Alfred and Edward King are brothers. They are trying to calculate their balancing payments for the tax year 2013–14, and the following information is available: Alfred King (1) Alfred was born on 14 June 1953. (2) He has been in partnership with Anne Royal and Mary Regal running a retail shop since 6 April 2004, but Mary resigned as a partner on 1 January 2014. (3) The partnership’s tax adjusted trading profit for the year ended 5 April 2014 is ￡228,000. This figure is taking account of capital allowances. (4) The tax written down value of the partnership’s capital allowances main pool at 6 April 2013 was ￡10,000.The only capital expenditure during the year ended 5 April 2014 was the cost of ￡82,000 for refurbishing the second floor of the partnership’s shop during January 2014. The cost was made up as follows:

问答题 (a) Calculate Alfred and Edward King’s respective balancing payments for the tax year 2013–14. Notes 1. You should take account of class 4 national insurance contributions when calculating the balancing payment for Alfred King. 2. The following mark allocation is provided as guidance for this requirement: Alfred (12·5 marks) Edward (10·5 marks)

问答题 (b) For the tax year 2013–14, Alfred wants to file his self-assessment tax return online, whilst Edward wants to file a paper tax return and have HM Revenue and Customs prepare a self-assessment on his behalf. Required: (i) Advise Alfred and Edward King of the latest dates by which their respective self-assessment tax returns for the tax year 2013–14 should be filed given their stated preferences.(2 marks) (ii) Advise Alfred and Edward King as to how long they must retain the records used in preparing their respective tax returns for the tax year 2013–14. Note: You should ignore the possibility of HM Revenue and Customs carrying out a compliance check.(2 marks)

问答题 (c) The partnership of Alfred King and Anne Royal is planning to replace Mary Regal by employing either one full-time employee or two part-time employees. A full-time employee would be paid a gross annual salary of ￡22,000, whilst the part-time employees would each be paid gross annual salaries of ￡11,450. Alfred would prefer to employ two part-time employees, but is concerned that this will be more expensive. Required: Explain to Alfred King why employing two part-time employees will not be any more expensive than employing one full-time employee. Note: You should include calculations to support your explanation, and should confine your answer to the information given in this part of the question.(3 marks)