(iii) The extent to which Amy will be subject to income tax in the UK on her earnings in r

(iii) The extent to which Amy will be subject to income tax in the UK on her earnings in respect of duties

performed for Cutlass Inc and the travel costs paid for by that company. (5 marks)

Appropriateness of format and presentation of the report and the effectiveness with which its advice is

communicated. (2 marks)

Note:

You should assume that the income tax rates and allowances for the tax year 2006/07 and the corporation tax

rates and allowances for the financial year 2006 apply throughout this questio

(iii) Amy’s UK income tax positionAmy will remain UK resident and ordinarily resident as she is not leaving the UK permanently or for a complete tax yearunder a full time contract of employment. Accordingly, she will continue to be subject to UK tax on he