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Tax Law Problem Question Employment and Income

2 Can anyone help please with a structure on how to answer such a question comprehensively Henri is the head chef of OrganicsandmashLtd. The company runs severalrestaurants under its own name in London which specialise in providing whollyorganic meals. Under his contract ofemployment Henri receives a salary of£80,000 a year and lives rent free in a flat above the company’s restaurant inIslington where he normally works. Members of his family are entitled to eathalf price in any of the restaurants on a Monday evening unless the restaurantis fully booked. The company’s business is very successful and Henri hasrecently been paid £10,000 to agree to forgoing his contractual right to amonth’s paid holiday. He also received£5,000 from a leading newspaper when he was voted chef of the year by thepaper’s readers. The company has recently opened a further restaurant inCardiff. Henri is required to monitorthis new restaurant for its first three years and is reimbursed his travellingexpenses from the Islington restaurant to Cardiff. Being a keen rugby fan, Henri often arrangeshis journeys to Cardiff to coincide with major rugby matches, spending theweekend in Cardiff and eating in the restaurant. Henri has also been employed as a consultant by FlashproductionsLtd, a company based in Edinburgh, for a new television series it is making onorganic cooking. In addition to advisingon the overall framework for the series, Henri is sent the draft script foreach show and is required to write a detailed report which he sends toFlashproductions. Henri is expressly liable for ensuring the validity of theorganic produce and cookery methods employed on the show. Recognising that Henri is a very busy man,his contract allows him to do all this work in Islington but he is required totravel to Edinburgh for the final production meeting before each show isrecorded. He is reimbursed the costsboth of travelling and his subscription to several scientific and trade papers. Advise Henri as to hisliability to income tax on the above facts.

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