My Income & Savings for $2022/23$ for Income tax computation

Employment Income & Benefits

$$ Annual Salary $46,000($employed for full year$)$ with $6,686$ PAYE deducted during the year. No bonus for $2022/23.$

$$ Company car $$ Skoda Octavia $$ available all tax year $$ list price $28,500($the company got a discount so only paid $26,000),$ registered on $6\mathrm{.}4\mathrm{.}21,$ petrol, CO$2$ emissions $128$g$/$km$.$ Fuel provided for both business and private mileage.

$$ Free use of employer canteen on$-$site.

$$ Free work mobile phone provided $($for work calls only$).$

$$ Use of employer equipment $$ I borrowed some sports equipment from work for my son and a colleague mentioned this might be taxable, so I have included the details here: gym equipment borrowed for one month in January $2023.$ The equipment was worth $16,000$ in total.

$$ Private Medical Insurance worth $950$ this cost my employer $350.$

I also paid a subscription of $475$ to my local sports club. My employer has not reimbursed me for this, but I have included it in case I can claim it for tax purposes as I often meet clients there.

Rental Income

$$ Gross rent on Cherry Tree cottage $1,350$ per month $$ rented out to tenants from $1$st August $2022$ with rent payable on $6$th of each month.

$$ Rental expenses $($I think all of these can be claimed but please advise$)$:

Mortgage interest $($paid in period $1$st August $22$ to $31$st March $23)-4,200$

Water rates $($paid in period $1$st August $22$ to $31$st March $23)-320$

Redecorating $2,000($repainting and wallpapering bedrooms$)$

Major renovations to roof of property before renting property out $8,200$

Savings Income & Dividends

$$ Bank Interest on savings accounts $2,600$

$$ Dividends from shares $3,500$

$$ ISA $$ dividends from stock & shares $2,400$

Charity payments

Annual donation to our local charity via Gift Aid $1,000$

Possible capital disposals in $2023/24$ advice required

$$ Sale of antique jewellery which I bought at auction in $2010$ for $12,000$ we have just had this valued at $82,000$ as it is rare.

$$ Sale of original painting $($inherited by my wife from her aunt in $2020$ at probate value of $100,000),$ now worth $125,000.$

I really don$$t know anything about capital gains tax so would be grateful if you could advise on the basic calculations of gains, any available allowances or reliefs for these disposals and the rates of capital gains tax payable. I$$d also be interested to know what happens if I sell an asset that$$s now worth less than what I paid for it $$ I$$m hoping this won$$t be the case but would like to be prepared just in case!

Appendix $3$ Tips for writing professional client letters

$1.$ Lay your letter out professionally with brief addresses, subject, and appropriate sign off $$ in professional tax exams you will be asked not to use your own name but to sign off with $$Tax Technician$$ or $$Tax Adviser$($for student anonymity for markers$)$ so it$$s a good idea to get used to doing this now. You can use a brief opening and closing line but there is no need to waffle!

$2.$ Always consider who the letter is addressed to $$ you will need to tailor your advice to your audience i$.$e$.,$ here you are writing to a client with no $($or little$)$ tax technical knowledge. You should therefore explain your points clearly and simply $$ perhaps get someone who has not studied any tax before to review a draft for you to check they can understand your advice.

$3.$ Keep all calculations and detailed workings$/$brief explanations in an Appendix and refer to key figures within your letter where appropriate.

$4.$ Use brief paragraphs $$ think of the client $($or the marker here!$)$ white space on the page is important to allow clear reading. Use the list of elements required in the assignment brief to help with layout and sub$-$headings:

$$ Calculation of taxable employment benefits $($in Appendix$)$

$$ Calculation of Income Tax payable $($in Appendix$)$

$$ Explanation of Income Tax Self$-$Assessment reporting obligations & deadlines

$$ Advice on Income tax planning

$$ Advice on future capital disposals

$5.$ Ensure you have covered all points requested in the client correspondence and double check the assignment brief details.

$6.$ Finally, review your letter for professional layout, presentation, spelling and grammar as these are all especially important in client communications.