Your client, Eric's son, Zak requires advice regarding the application of the personal service company (IR35) legislation.

Zak:
– Is the sole shareholder, director and employee of Yoyo Ltd, a company which provides consultancy services.
– In the year ended 31 March 2016, Yoyo Ltd’s gross fee income from relevant engagements performed by Zak will be £110,000.
– In the tax year 2015/16, Zak will draw a salary of £24,000 and dividends of £50,000 from Yoyo Ltd.
– Neither Yoyo Ltd nor Zak has any other source of income.

Required:
(c) Calculate Zak’s taxable income for the tax year 2015/16 if the personal service company (IR35) legislation were to apply to the fee income received by Yoyo Ltd. (5 marks)