Claud Chapperon is a self-employed distributor of wholesale clothing who began trading on 1 July 2012. His summarised accounts for the year to 30 June 2020 are shown below.

The figures in brackets refer to the notes which follow.

Notes:
1. The basis of both the opening and closing inventory valuations was "lower of cost or market value" less a general reserve of 50%.
2. Sales include £500 reimbursed by Claud's family for clothing taken from stock. The reimbursement represented cost price.
3. Included in wages are Claud's drawings of £200 per week and his wife's wages and secondary NICs totalling £16,750. His wife works full-time in the business.
4. The charge for repairs and renewals includes £3,244 for fitting protective covers over the factory windows and doors to prevent burglary.

5. Miscellaneous expenses comprise:

6. Bad debts comprise:

7. Legal expenses comprise:

8. Claud's leased car had a retail price of £20,000 and was leased from 1 July 2019 to 30 June 2020. The car has emissions of 119g/km.

9. Gift Aid donations consist of £120 paid to the local children's hospital and £80 paid to Oxfam. Both payments were made on 30 April 2020.
10. Interest is as follows:

11. HM Revenue and Customs has agreed that one-third of Claud's mileage is private.
Included in the charge for motor running expenses is £65 for a speeding fine which was incurred by Claud whilst delivering goods to a customer.

12. The premium was for a lease of six years. The lease began on 1 July 2019.

13. Interest recently credited to the NS&I account is as follows:

The following information is also provided:

(i) Capital allowances for the year to 30 June 2020 are £5,680.

(ii) Claud was born in 1964. He made net contributions of £11,800 to a registered pension scheme during 2020-21. His wife was also born in 1964.

(iii) Claud is a Scottish taxpayer.

You are required:

(a) To prepare a profit adjustment statement in respect of the period of account to 30 June 2020, showing the trading income for 2020-21.

(b) To calculate the Class 4 NICs payable by Claud for 2020-21.

(c) To prepare an estimate of Claud's income tax liability for 2020-21.

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Sales (2) Opening inventory (1) Purchases Closing inventory (1) Gross profit Wages and national insurance (3) Rent and rates Repairs and renewals (4) Miscellaneous expenses (5) Claud's own income tax and NICs Bad debts (6) Legal expenses (7) Depreciation Lease rental on Claud's car (8) Loss on sale of office furniture Gift Aid donations (9) Transport costs Interest (10) Running expenses of Claud's car (11) Premium on lease (12) Lighting and heating Sundry expenses (all allowable) Net profit 4 40,000 224,000 264,000 32,000 55,200 29,100 3,490 665 14,940 820 1,060 3,245 8,400 60 200 3,870 990 2,000 6,000 1,250 710 400,000 232,000 168,000 132,000 36,000