In the tax year 2021/22 Henry Murray has been working as a finance manager earning £67,500 per annum. He is provided with a diesel car by his employer, list price £27,000, with CO² emissions of 123g/km. His employer pays for all the fuel for the car. He is also provided with a parking space at work in the center of London that is worth £785 a year. There is a staff canteen available to all staff where Henry has a subsidized lunch each day; this costs him £1.40 and he estimates an equivalent meal elsewhere would be approximately £5.90. Henry had to pay professional subscriptions to the ICAEW of £405 this year.

Required:

Calculate for Henry the total amount of employment remuneration that he should include on his tax return for 2021/22. [Remuneration only required, no taxation.]

Question 2

Henry also runs his own consultancy business, running personal finance workshops. This year he made profits of £8,700 after deducting personal withdrawals of £3,600. He kept accurate mileage logs and charged £245 in petrol costs to arrive at this profit, and deducted the cost of gifts to personal contacts who had referred clients to him, amounting to £970.

Required:

Calculate for Henry the correct profits that he should include on his tax return for 2021/22.