Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Multiple choice question Only one of the following packages of benefits is exempt from tax - which is it? A Company car and parking space

image text in transcribed
image text in transcribed
Multiple choice question Only one of the following packages of benefits is exempt from tax - which is it? A Company car and parking space at work B Staff canteen and Amazon voucher at Christmas C Private health insurance and workplace nursery D Moblle phone and broadband internet access at home Question Felicity is employed as a retail manager throughout 2022/23. During the year her remuneration package was composed of different elements as follows: a) Her annual salary was 55,000 and she was paid a bonus of 12,000 in December 2022 for achieving her targets. b) At Christmas all staff, including Felicity, received a Christmas gift of a 20 Marks and Spencer voucher. c) Felicity is covered by private health insurance arranged by her employer at no cost to her. The private health insurance costs her employer 1,200 per individual. d) She has a company car provided by her employer. It is a petrol car and has emissions of 138g/km. The list price was 30,500 and Felicity made a one-off capital contribution of f4,500 in order to obtain the car of her choice. Her employer does not provide fuel for private use. e) Her employer pays her membership at a local gym. This costs f80 per month and this benefit is available to all employees of the company. f) Throughout the year she had an interest free loan of 11,000 made by her employer to be used towards the deposit for a house. Felicity will have to start to repay this loan in 2023/24. REQUIRED a) Explain the income tax treatment of each element of Felicity's remuneration package and use this to calculate the taxable employment income for Felicity for 2022/23. Assume an HMRC official interest rate of 5%. b) Prepare Felicity's income tax computation for 2022/30. In addition to her employment income the only other income she has in the year is property income. She received property rental income of 12,000 and incurred the following expenses: During the year she made a gift aid donation of 40. Multiple choice question Only one of the following packages of benefits is exempt from tax - which is it? A Company car and parking space at work B Staff canteen and Amazon voucher at Christmas C Private health insurance and workplace nursery D Moblle phone and broadband internet access at home Question Felicity is employed as a retail manager throughout 2022/23. During the year her remuneration package was composed of different elements as follows: a) Her annual salary was 55,000 and she was paid a bonus of 12,000 in December 2022 for achieving her targets. b) At Christmas all staff, including Felicity, received a Christmas gift of a 20 Marks and Spencer voucher. c) Felicity is covered by private health insurance arranged by her employer at no cost to her. The private health insurance costs her employer 1,200 per individual. d) She has a company car provided by her employer. It is a petrol car and has emissions of 138g/km. The list price was 30,500 and Felicity made a one-off capital contribution of f4,500 in order to obtain the car of her choice. Her employer does not provide fuel for private use. e) Her employer pays her membership at a local gym. This costs f80 per month and this benefit is available to all employees of the company. f) Throughout the year she had an interest free loan of 11,000 made by her employer to be used towards the deposit for a house. Felicity will have to start to repay this loan in 2023/24. REQUIRED a) Explain the income tax treatment of each element of Felicity's remuneration package and use this to calculate the taxable employment income for Felicity for 2022/23. Assume an HMRC official interest rate of 5%. b) Prepare Felicity's income tax computation for 2022/30. In addition to her employment income the only other income she has in the year is property income. She received property rental income of 12,000 and incurred the following expenses: During the year she made a gift aid donation of 40

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting Tools for business decision making

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

5th edition

470506954, 471345881, 978-0470506950, 9780471345886, 978-0470477144

More Books

Students also viewed these Accounting questions

Question

=+2. What is the difference between brand voice and tone?

Answered: 1 week ago