Question
In the tax year 2019/20, Samantha worked for Gaming plc until she was made redundant on 5 April 2020. Her salary for the year ended
In the tax year 2019/20, Samantha worked for Gaming plc until she was made redundant on 5 April 2020. Her salary for the year ended 5 April 2020 was 54,000. She received the following redundancy package in 2019/20:
Cash payment for compensation payment in lieu of notice - not included in her employment contract (not contractual) 50,000
Statutory redundancy payment 5,000
Company car at market value 22,000
She received the following employment benefits from Gaming plc in the tax year 19/20:
Samantha was provided with a company car with an emission rate of 105g/km and a 1800cc engine. The list price when new was 28,000 and Sports plc has paid for all the petrol for the car. Samantha reimbursed Sports plc 20 per month for the petrol for 5,000 personal miles. The total miles for the year were 20,000.
In January 2020 Sports plc required Samantha to attend a sports medicine conference in New Zealand. Sports plc paid 5,000 for her travel and hotel accommodation for a week. She was paid 10 per day to cover expenses. When she was in New Zealand, she had an accident and Sports plc paid all her medical bills which were 1,930.
Samantha paid a personal pension contribution of 3,000 a year. Samantha received dividend income of 5,000 and savings income of 600.
Calculate Samanthas taxable employment income (including the redundancy package) for the tax year ended 5 April 2020. (12 marks)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started