2. Income from Employment Camille is employed by Keyline Ltd. as Financial Controller where she receives an annual salary of 55,000. Keyline pay a profit-related bonus. Camille received a bonus of 4,500 on profits for the year to 31 March 2020 and is due to receive a bonus of 6,500 for profits for the year to 31 March 2021. Bonus payments are made in June following the year end. Keyline provide Camille with a motor car for her use. It had a list price of 20,000 and omits 111g/km of CO2. The company paid the petrol for both private and business usage. Camille's total petrol use was 4,000 of which 2,000 was personal. She pays Keyline 150 per month for petrol. Camille was also provided with the use of a company flat. This flat had cost 130,000 in June 2017 and had an annual value of 3,000. Keyline paid for gas and electricity bills totaling 2,000. Camille pays 100 per month for the use of the accommodation which is not job- related. She earns rent of 800 per month sub-letting the spare bedroom of her company flat. Other benefits paid by the company for Camille were: (1) A car parking space worth 1,000 per annum at a car park near Keyline's office. (2) The use of a mobile phone which could be used both privately and for business and which cost the company 600. (3) A hamper worth 145 in lieu of the office Christmas party which had to be cancelled. Her only other income for 2020/21 was a win on the National Lottery of 560, bank interest received of 800 and dividend income of 4,500. Required: You are required to compute the income tax payable by Camille in 2020/21, assuming she is able to claim the personal allowance and any other allowances relevant to this scenario. 13 marks You are required to suggest one way in which Keyline could improve the effectiveness of Camille's compensation structure which would improve Camille's after-tax pay without costing Keyline any more. 2 marks 2. Income from Employment Camille is employed by Keyline Ltd. as Financial Controller where she receives an annual salary of 55,000. Keyline pay a profit-related bonus. Camille received a bonus of 4,500 on profits for the year to 31 March 2020 and is due to receive a bonus of 6,500 for profits for the year to 31 March 2021. Bonus payments are made in June following the year end. Keyline provide Camille with a motor car for her use. It had a list price of 20,000 and omits 111g/km of CO2. The company paid the petrol for both private and business usage. Camille's total petrol use was 4,000 of which 2,000 was personal. She pays Keyline 150 per month for petrol. Camille was also provided with the use of a company flat. This flat had cost 130,000 in June 2017 and had an annual value of 3,000. Keyline paid for gas and electricity bills totaling 2,000. Camille pays 100 per month for the use of the accommodation which is not job- related. She earns rent of 800 per month sub-letting the spare bedroom of her company flat. Other benefits paid by the company for Camille were: (1) A car parking space worth 1,000 per annum at a car park near Keyline's office. (2) The use of a mobile phone which could be used both privately and for business and which cost the company 600. (3) A hamper worth 145 in lieu of the office Christmas party which had to be cancelled. Her only other income for 2020/21 was a win on the National Lottery of 560, bank interest received of 800 and dividend income of 4,500. Required: You are required to compute the income tax payable by Camille in 2020/21, assuming she is able to claim the personal allowance and any other allowances relevant to this scenario. 13 marks You are required to suggest one way in which Keyline could improve the effectiveness of Camille's compensation structure which would improve Camille's after-tax pay without costing Keyline any more. 2 marks