Question 1d
Your manager has had a meeting with Wanda, a client of your firm. Extracts from the memorandum prepared by your manager following the meeting, together with an email detailing the work he requires you to do, are set out below.
Extracts from the memorandum prepared by your manager – dated 3 December 2018
Background
Wanda intends to start a new business, KS, selling children’s clothes. This business will be partly financed by an inheritance which Wanda will receive following the recent death of her mother. Wanda’s husband, Roth, will also be involved in the business.
Wanda has not been employed since 31 December 2012 and has not received any taxable income since that date.
Income tax refund
Wanda has received an unexpected refund of income tax from HM Revenue and Customs (HMRC) in respect of the tax year 2011/12.
Email from your manager – dated 4 December 2018
Please prepare the following notes and calculations for use in a meeting with Wanda.
(d) Income tax refund
Prepare a summary of the actions which we should take, and the matters of which Wanda should be aware, in relation to the income tax refund.
Tax manager
Required:
Prepare the notes for use in a meeting with Wanda as requested in the email from your manager. The following marks are available:
(d) Income tax refund. (5 marks)
Professional marks will be awarded for the approach taken to problem solving, the clarity of the explanations and calculations, the effectiveness with which the information is communicated, and the overall presentation and style of the notes. (4 marks)