You have just had a meeting with a manager in your office and they have asked you

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Question:

You have just had a meeting with a manager in your office and they have asked you to assist them with the year-end tax calculations of a client carrying on an IT business. The information in relation to John's trading profits and capital expenditure are detailed below.

Profit and Loss account for the year ended 31 March 2023 Notes

£ £ Income 750,000 Depreciation 10,000 Salaries and wages 1 530,000 Legal and professional fees 2 35,000 Pension contribution 3 15,000 Rent and rates and premises costs 42,450 Travel and conferences 4 17,000 Sundry expenses 5 5,000 654,450 95,550 Invest NI grant income 20,000

Profit from trade 115,550

1. Salaries & Wages

£30,000 relates to an accrued bonus for staff which was paid in January 2024.

2. Legal and professional fees

Legal and profession fees include the following: £ Solicitors fees for conveyancing work on new office 15,000 Stamp Duty Land Tax (SDLT) 2,500 Legal fees for taking non-paying customer to court 5,000 Accountancy fees* 5,000 * this balance includes £500 for the completion of the tax return for John's wife.

3. Pension contributions

£5,000 of pension contributions relate to contributions made to John's personal pension. The opening staff pension accrual was £1,500 and the closing staff pension accrual was £3,000.

4. Travel and conferences

In September 2022 John attended a conference in Silicon Valley. The conference lasted 3 days. John took the opportunity to explore the West Coast for a further 2 days whilst he was there, at a cost of £1,000 for accommodation and meals which have been included in the business accounts. John also leases a car with CO2 emissions of 120g/km. The lease cost included within travel expenses is £5,000. John uses his car for 60% business use.

5. Sundry expenses

Included in sundry expenses are: £ Employees parking fines 100 Staff Christmas party 2,500 Christmas gifts of wine to customers 1,000 £ Capital allowances available 85,500 Other relevant information required in calculating John's tax liability is as follows: John has a rental property business from which he has made taxable rental profits of £20,000. John has earned UK Deposit interest of £1,000 and has received UK dividends of £500. John has made gift aid contributions in the year of £1,200.

Requirement

Calculate John's Income Tax and National Insurance Contribution liability for the tax year 2022/23 based on the information provided.