Glenda has been self-employed for many years and prepares accounts to 31 March each year. Her adjusted profits (after deduction of capital allowances) are currently running at approximately £80,000 per annum. She has no other income for tax purposes and she is not a Scottish taxpayer. 

Glenda has been self-employed for many years and prepares accounts to 31 March each year. Her adjusted profits (after deduction of capital allowances) are currently running at approximately £80,000 per annum. She has no other income for tax purposes and she is not a Scottish taxpayer. 

(a) Assuming that Glenda continues to operate as a sole trader and that her adjusted trading profit for the year to 31 March 2022 is £80,000, calculate the total liability to income tax and NICs for tax year 2021-22. 

(b) Estimate the total liability to income tax, NICs and corporation tax that would arise for the year if Glenda formed a company and extracted £60,000 of the company's profit for the year either: 

(i) as a salary (so that her salary plus secondary NICs would total £60,000),

(ii) as a £60,000 dividend. 

(c) In case (b), How would the total liability be affected if Glenda took £8,840 in the form of a salary and the remainder of the £60,000 as a dividend?

Assume for the sake of simplicity that all director's remuneration and dividends are taken during tax year 2021-22. Perform all calculations to the nearest £.