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Question 1b

On 30 June 2011 Josie Jones, aged 42, ceased self-employment as a graphic designer.

On 1 August 2011 she commenced employment with Typo plc as a creative director.

The following is the summarised information for the tax year 2011–12:

Josie’s payments on account of income tax in respect of the tax year 2011–12 totalled £34,400.

Her income tax payable figure for the tax year 2011-12 arrived at is £36,200

Required:
(b) (i) Calculate Josie Jones’ balancing payment or repayment for the tax year 2011–12 and her payments on account for the tax year 2012–13. You should state the relevant due dates;

Notes:
1. You should assume that no claim is made to reduce the payments on account.

(ii) Assuming that Josie Jones expects to remain employed throughout the tax year 2012–13, explain why she will probably be able to make a claim to reduce her payments on account for the tax year 2012–13. (2 marks)