Ron has decided to engage the services of Derek Green, a woodworking machine operator. Derek will...

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Ron has decided to engage the services of Derek Green, a woodworking machine operator. Derek will work for Ron's business for 4 days per week at a fixed monthly fee and his duties will mainly be working on the new specialist carpentry machine that Ron will purchase. Ron will instruct Derek each week of which jobs to do and the deadlines to work to. Derek has suggested that he should be treated as self- employed or will supply his services via his own limited company. Task 3. a) Prepare a note considering Derek's tax position, considering his tax status and the benefits to Ron if Derek is not an employee. Identify any additional information that you would require to come to a satisfactory decision of Derek's status. b) Assuming that Derek provides his services via a limited company that falls within the Personal services/IR35 regulations, calculate the profits chargeable to CT based on the following information: Pre IR35 TTP Fees within IR35 Salary paid ERS NIC on salary Company pension contributions £54,500 £14,000 £712 £4,000 £34,500 Ron has decided to engage the services of Derek Green, a woodworking machine operator. Derek will work for Ron's business for 4 days per week at a fixed monthly fee and his duties will mainly be working on the new specialist carpentry machine that Ron will purchase. Ron will instruct Derek each week of which jobs to do and the deadlines to work to. Derek has suggested that he should be treated as self- employed or will supply his services via his own limited company. Task 3. a) Prepare a note considering Derek's tax position, considering his tax status and the benefits to Ron if Derek is not an employee. Identify any additional information that you would require to come to a satisfactory decision of Derek's status. b) Assuming that Derek provides his services via a limited company that falls within the Personal services/IR35 regulations, calculate the profits chargeable to CT based on the following information: Pre IR35 TTP Fees within IR35 Salary paid ERS NIC on salary Company pension contributions £54,500 £14,000 £712 £4,000 £34,500

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