614119-514120 Task 1: part 1: The below information is for the tax year 2019/20 (for the current year) Mr. Hilal is a UK Resident, working in a large UK company for a salary of $30,000. He received a bonus of 5,000 during the current year. Ho contributed 1% of his salary to a professional body for employment use and spent 500 on the purchasing office uniform He received a company car (Diesel car) for business and personal use. The CO2 emission of the car is 119 gms per km, the cost of the car was $28.000 but the list price was 30,000. The company spent 3,000 on the accessories of the car. Mr Hilal contributod 18.000 for the capital cost of the car and 1000 for the use of the car. The company spent all the running costs of the car including fuel. The car has not met RDE2 standards On 10 January 2016, Company provided him an accommodation, which company purchased on 25 January 2004. The market value of the property on 10 January 2016 was 100,000 The details of the purchase price and the cost incurred by the company are listed below: Jan 2004 Purchase Price of property 70,000 X 12,000 Dec 2005 Cost of Improvement May 2016 Cost of Improvement 10,000 June 2016 Cost of Painting the building 5,000 Nov 2019 Cost of Improvement 40,000 X The Annual Ratcable Value of the property was 6,000 and Hilal repaid 1500 to her employer for the use of the house for personal purposes. On 6 December 2019, Company also provided him home entertainment system costing 9,000 for his personal uso The company granted him a loan of 60,000 on 6 April 2019 for the marriage of his family members. On 30 November 2019, Hilal has repaid 20,000 to the employer. Balance loans are outstanding on the tax year-end of 5 April 2020. He paid 300 interest to the company for the borrowed loan (Use the Average method) During the year Hilal spent 10 nights within the UK for employment purposes. Employer- paid 4 per night as daily Allowance The company provided him 2 mobile phones both for business and personal use. The cost of the Ist mobile phone was 400 and the 2nd one was 500. The company also provided him the use of Van with fuel for personal purposes during the year 2019/20 Other than the salary he had investment income from various sources. He was owning 3 houses in the UK and received a Rental income of 40,000. He invested in Debentures of UK company and received an Interest income of 32,000. He was a partner in a partnership firm had a 60% share in the partnership profit. The profit of the partnership fimm for the year ended 31/12/2019 was 20,000 As of now, he has not become a member of any pension scheme such as Personal Pension Scheme and Occupational Pension scheme. He is not having any habit of donating money directly to the charity or through a Payroll deduction scheme. a) You are required to calculate the tax liability and tax payable of Mr.Hilal for the tax year 2019/20. Also, calculate NIC class 1 and 1A. (6 marks) TAX RATE AND ALLOWANCES FOR THE TAX YEAR 2019/20 Income Tax Rate: NS (Other Saving Income Income) E0 to 5,000 0% Dividend E5001 to 37,500 (basic rate band) 20% 20% 7.594 37,501 to 150,000 (higher rate band) 40% 40% 32.5% above L150.00 Additional mate) 45% 45% 38.1% Personal Allowance 12,500 Expensive Accommodation benefit limit is 75,000 Official Rate of Interest is 2.5% Statutory limit for Milcage allowance of Motor Cars 45p per mile for first 10,000 miles 25p per mile for more than 10,000 miles Car benefits: CO2 emission per Km 50 grms or less Petrol car % Diesel Car% 16% 20% 23% 51 to 75 gms 19% 22% 76 to 94 gms 26% 27% 95 ms Each complete additional 5 gms emission above 95 Gms 23% An additional 1% is added to the 23% or 27% up to a maximum % of 37% For Fuel Benefit: Base figure is 24,100 % Employee's contribution: (Primary Contribution) Employer's Contribution (Secondary Contribution) 0% 0% El to 8,632 8,633 to 50,000 12% 2% El to 8,632 Above 8,632 Employment Allowance (deduction) 13.8% 3,000 Above 50,000 Class 1A NIC: Benefits X 13.8% Class 2 NIC = 3 per week Class 4 NIC Nil l to 8,632 8,633 to 50,000 above 50,000 9% 2% 614119-514120 Task 1: part 1: The below information is for the tax year 2019/20 (for the current year) Mr. Hilal is a UK Resident, working in a large UK company for a salary of $30,000. He received a bonus of 5,000 during the current year. Ho contributed 1% of his salary to a professional body for employment use and spent 500 on the purchasing office uniform He received a company car (Diesel car) for business and personal use. The CO2 emission of the car is 119 gms per km, the cost of the car was $28.000 but the list price was 30,000. The company spent 3,000 on the accessories of the car. Mr Hilal contributod 18.000 for the capital cost of the car and 1000 for the use of the car. The company spent all the running costs of the car including fuel. The car has not met RDE2 standards On 10 January 2016, Company provided him an accommodation, which company purchased on 25 January 2004. The market value of the property on 10 January 2016 was 100,000 The details of the purchase price and the cost incurred by the company are listed below: Jan 2004 Purchase Price of property 70,000 X 12,000 Dec 2005 Cost of Improvement May 2016 Cost of Improvement 10,000 June 2016 Cost of Painting the building 5,000 Nov 2019 Cost of Improvement 40,000 X The Annual Ratcable Value of the property was 6,000 and Hilal repaid 1500 to her employer for the use of the house for personal purposes. On 6 December 2019, Company also provided him home entertainment system costing 9,000 for his personal uso The company granted him a loan of 60,000 on 6 April 2019 for the marriage of his family members. On 30 November 2019, Hilal has repaid 20,000 to the employer. Balance loans are outstanding on the tax year-end of 5 April 2020. He paid 300 interest to the company for the borrowed loan (Use the Average method) During the year Hilal spent 10 nights within the UK for employment purposes. Employer- paid 4 per night as daily Allowance The company provided him 2 mobile phones both for business and personal use. The cost of the Ist mobile phone was 400 and the 2nd one was 500. The company also provided him the use of Van with fuel for personal purposes during the year 2019/20 Other than the salary he had investment income from various sources. He was owning 3 houses in the UK and received a Rental income of 40,000. He invested in Debentures of UK company and received an Interest income of 32,000. He was a partner in a partnership firm had a 60% share in the partnership profit. The profit of the partnership fimm for the year ended 31/12/2019 was 20,000 As of now, he has not become a member of any pension scheme such as Personal Pension Scheme and Occupational Pension scheme. He is not having any habit of donating money directly to the charity or through a Payroll deduction scheme. a) You are required to calculate the tax liability and tax payable of Mr.Hilal for the tax year 2019/20. Also, calculate NIC class 1 and 1A. (6 marks) TAX RATE AND ALLOWANCES FOR THE TAX YEAR 2019/20 Income Tax Rate: NS (Other Saving Income Income) E0 to 5,000 0% Dividend E5001 to 37,500 (basic rate band) 20% 20% 7.594 37,501 to 150,000 (higher rate band) 40% 40% 32.5% above L150.00 Additional mate) 45% 45% 38.1% Personal Allowance 12,500 Expensive Accommodation benefit limit is 75,000 Official Rate of Interest is 2.5% Statutory limit for Milcage allowance of Motor Cars 45p per mile for first 10,000 miles 25p per mile for more than 10,000 miles Car benefits: CO2 emission per Km 50 grms or less Petrol car % Diesel Car% 16% 20% 23% 51 to 75 gms 19% 22% 76 to 94 gms 26% 27% 95 ms Each complete additional 5 gms emission above 95 Gms 23% An additional 1% is added to the 23% or 27% up to a maximum % of 37% For Fuel Benefit: Base figure is 24,100 % Employee's contribution: (Primary Contribution) Employer's Contribution (Secondary Contribution) 0% 0% El to 8,632 8,633 to 50,000 12% 2% El to 8,632 Above 8,632 Employment Allowance (deduction) 13.8% 3,000 Above 50,000 Class 1A NIC: Benefits X 13.8% Class 2 NIC = 3 per week Class 4 NIC Nil l to 8,632 8,633 to 50,000 above 50,000 9% 2%