Clara Lombardi is 58 years old and was born in Boston, USA. Clara has lived and worked in London, UK, for the past ten years but maintains a permanent home in Boston, USA: she plans to return to Boston, USA, when she retires from her job as an economic analyst at the Bank of England. During the tax year 2018/19, Clara spent 335 days in the UK. 20 days were spent living in her permanent home in Boston, USA, whilst on holiday. Ten days were spent living and working in Frankfurt, Germany, whilst on work-related duties. What is Clara’s status for UK income tax in 2018/19?

A. UK resident and UK domiciled

B. UK resident and USA domiciled

C. USA resident and UK domiciled

D. Germany resident and USA domiciled

2. Minsun Halas is employed as a tax analyst at Noll plc., a large investment bank. During the tax year 2018/19, Noll plc. provided Minsun with non-job related accommodation and a car. Minsun used the car for both work and private purposes. Which of the following types of National Insurance contributions must Minsun pay in relation to 2018/19?

A. Class 1 secondary and Class 1A

B. Class 2 and Class 4

C. Class 1 primary and Class 1A

D. Class 1 primary

3. Charlotte Madden is a baker. Charlotte’s business, Madden Bakeries Ltd, produces organic bread, cakes and pastries for restaurants in London, UK. During the tax year 2018/19, Madden Bakeries Ltd.’s taxable turnover (excluding capital items) was £1,105,000. Madden Bakeries Ltd.’s VAT administration and payments of VAT liabilities are up-to-date. Charlotte Madden has never been convicted of a VAT offence or assessed to a penalty for VAT evasion involving dishonest conduct. Which, if any, of the special schemes for VAT administration are available for Madden Bakeries Ltd in 2018/19?

A. Cash accounting scheme, annual accounting scheme and flat-rate scheme for small businesses

B. Cash accounting scheme and annual accounting scheme

C. Annual accounting scheme and flat-rate scheme for small businesses

D. None: Madden Bakeries Ltd.’s taxable turnover exceeds the thresholds for participation in any of the special schemes for VAT administration.

Answer rating: 100% (QA)

1 ANS WER C USA resident and UK dom ic iled EX PL AN ATION In order to determine an individual s tax ... View the full answer