Mr. Albert lives in a company flat accommodation which is not job related. The cost of the accommodation for the employer was 75,000. The annual value of the flat is 4,000. He also received cash bonus of 2,000 on 6th June 2020. Assuming that the official rate interest was 2.5%. The taxable accommodation benefit to be included in his employment income for the tax year 2019-20 was

a.

4,000

b.

1,875

c.

7,875

d.

4,250

The taxable income of Mr. Robert was 130,000. He travelled 10,000 miles for business trip by his own car. His employer paid him 0.60 penny per mile for each business mile. His taxable income after including mileage allowance was :

a.

128,500

b.

131,500

c.

124,000

d.

136,000

Mr. David had Net other income of 12,000, Net savings income of 1000 and Net Dividend income of 2,500 for the tax year 2019-2020. The tax liability on dividend income of Mr. David for the tax year 2019-2020 was

a.

100

b.

0

c.

37.5

d.

187.50

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Question 30

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Mr. Edward earned only salary income of 90,000 during the tax year 2019-20. His total allowable deductions for the tax year 2019-2020 was 30,000. His taxable earnings for the tax year will be

a.

47,500

b.

120,000

c.

12,500

d.

60,000