Cate requires advice on the after-tax cost of taking on a part-time employee and the tax implications of starting to sell items via the internet. Cate’s husband, Ravi, requires advice in relation to capital gains tax on the disposal of an overseas asset.

Cate:
– Is resident and domiciled in the UK. She is aged 48.
– Is married to Ravi.
– Runs a successful unincorporated business, D-Designs.
– Receives dividends of £27,000 each year.
– Wants to sell some second-hand books online.

D-Designs business:
– Was set up by Cate in 2008.
– Is now making a taxable profit of £90,000 per annum.
– Operates a number of dress shops and already employs six full-time staff.
– Requires an additional part-time employee.

Part-time employee – proposed remuneration package:
– Salary of £12,000 per annum.
– Qualifying childcare vouchers of £25 per week for 52 weeks a year.
– Mileage allowance of 50 pence per mile for the 62-mile round trip required each week to redistribute stock between the shops. This will be for 48 weeks in the year.
– This employment will be the employee’s only source of taxable income.

Sale of second-hand books:
– Cate inherited a collection of books from her mother in December 2013.
– Cate intends to sell these books via the internet.
– Some of the books are in a damaged state and Cate will get them rebound before selling them.

Ravi:
– Is domiciled in the country of Goland.
– Has been resident in the UK since his marriage to Cate in February 2007.
– Has UK taxable income of £125,000 in the tax year 2014/15.
– Realises chargeable gains each year from disposals of UK assets equal to the capital gains tax annual exempt amount.
– Sold an investment property in Goland in February 2015 for £130,000, realising a chargeable gain of £70,000.
None of the proceeds from the sale of this property have been remitted to the UK.

Required:
(a) Calculate the annual cost for Cate, after income tax and national insurance contributions, of D-Designs employing the part-time employee. (9 marks)