Jenny Jackson is sports director at Sea Castle Hotel on the north coast. She has set up a company called Sun & Fun Ltd. And she asked Sea Castle to pay her contract sum directly to Sun & Fun. Miss Jackson has no other clients, she does not use her own equipment She has an assistant whom she pays. She often decides her own hours. Required: Answer the following questions. a. Would you classify Miss Jackson as a contract of service or a contract for services? Give at least FIVE (5) reasons for your answer. Use examples from the case. b. What are the tax implications based on your answer in ‘a’ above
Jenny Jackson is sports director at Sea Castle Hotel on the north coast. She has set up a company called Sun & Fun Ltd. And she asked Sea Castle to pay her contract sum directly to Sun & Fun. Miss Jackson has no other clients, she does not use her own equipment She has an assistant whom she pays. She often decides her own hours. Required: Answer the following questions. a. Would you classify Miss Jackson as a contract of service or a contract for services? Give at least FIVE (5) reasons for your answer. Use examples from the case. b. What are the tax implications based on your answer in ‘a’ above
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Jenny Jackson is sports director at Sea Castle Hotel on the north coast. She has set up a company called Sun & Fun Ltd. And she asked Sea Castle to pay her contract sum directly to Sun & Fun. Miss Jackson has no other clients, she does not use her own equipment She has an assistant whom she pays. She often decides her own hours.
Required:
Answer the following questions.
a. Would you classify Miss Jackson as a contract of service or a contract for services? Give at least FIVE (5) reasons for your answer. Use examples from the case.
b. What are the tax implications based on your answer in ‘a’ above
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