Case Study: 5

Tom is a boarding school teacher at Wallington School and as per boarding school requirements, he need to live in a house in the school grounds. The value of the house provided for his accommodation is costs 85,000 with an annual value is 1,250. School paid an electricity bill of 300, a gas bill of 200, a gardeners bill of 1,000 and a redecoration costs 1,500 in the current year. Tom makes a monthly contribution of 100 for his accommodation and other bills. He earns a gross salary of 30,000 per annum and make an occupational pension contribution of 2,000 per annum.

You are required to calculate Toms taxable employment income and tax liability as per UK Tax Laws 2018/19.