Question 2. Sifan has asked your firm to provide advice to her husband, Marc, as a favour to her, and you have scheduled a meeting with them both. Marc makes hand crafted birthday cards, wedding invitations and other craft-based products. He has decided to start charging for his products as they have featured and been "liked" on various social media sites. Marc shared these likes with his friends who also passed this on to other potential clients. Marc is concerned as to whether he would be liable to income tax on the money he generates from selling his products. In 2023/24 he was paid £270 by a friend to produce 100 wedding invitations and £1,050 by another friend for 200 hands crafted invitations for her birthday. He estimates his tax allowable expenses at for 2023/24 at £350. Requirement a) Explain whether your firm can provide advice to both Sifan and Marc and any measures that should be put in place by your firm to manage any issues that you identify. (8 marks) b) Explain, with reference to the facts provided by Marc, the factors that will be used to determine whether the income he generates from selling his craft products amount to trading and thus subject to income tax. (12 marks)

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