Explain the gross maximum tax relievable pension contributions Mary andHarry can make, outlining the method of tax relief in each case.

4 pages Question 1For the tax year 2019/20 Kerry had taxable trading profits of £88,000 and had made payments on account of £18,000. Her only other income in the tax year was bank interest received of £3,000 and dividend income of £10,000.Requirements:Calculate Kerry’s final balance of income tax outstanding in respect of the tax year 2019/20, stating the due date. Using this calculation explain the payments on account required in respect of 2020/21 and state when they are due. (10 marks)Question 2Mary currently has no earned income but has a high level of savings income. She wants to continue to pay into the personal pension plan that she set upand paid into when she was working.Mary’s husband, Harry, is employed and has a personal pension scheme. He has an annual income of £90,000.Both Mary and Harry intend to pay as much as possible into their pension funds each tax year.Harry is looking for a tax efficient investment as he says he “is not happy paying higher rate tax”. Requirement:Explain the gross maximum tax relievable pension contributions Mary andHarry can make, outlining the method of tax relief in each case. Clarify whether Harry is a higher rate taxpayer and suggest three investmentsthat he could make to allow tax free income.(maximum word count 200 words)You should assume the tax rates for 2019/20 continue to apply in the future.(10 marks) Question 3Sam and Bill are in partnership. Bill gets a salary of £20,000 per annum and the balance of profits is shared in the ratio 2:1 with Sam getting the larger share. The profit for the year ended 30 June 2019 was £200,000. Neither of the partners have income from any other source. Requirement:Calculate both partner’s total liability for income tax and National Insurance Contributions (NICs) for 2019/20. (10 marks)Question 4 Leslie recently sold her house which she had owned for 25 years. She lived in the house for the first 5 years of ownership whilst renting her spare bedroom, charging £500 per month