Please let me know what other information i can give you for this question to be answered as i asked it before and it wasnt answered. I have uploaded pictured of the tax tables and information on national insurance. UK Tax rules.

Question 1

Mr Shea is an employee with a remuneration package of 95,000 per annum

and his employer provides him with the following benefits during the tax year

2019/20:

• The personal use of two mobile phones, each costing 1,800
• Medical insurance of market value 1,000 but the company got a 35% group discount
• Two new suits which cost the company 250 each but retail value was 400 each
• An interest free loan of 11,000 from 6 September 2019.

-Calculate the National Insurance Contributions due for 2019/20 from both Mr Shea and his employer in respect of his employment package.

-State two actions that Mr Shea should do to ensure his taxable benefit in the future is reduced.

(10 marks)

Search A Aa A E D-A- AaBbCcDc AaBbcc AaBbcc AaBb Cc 1 CIMA Re... Heading 1 1 Normal 1 No Spac... Paragraph Styles Tax Rates and Allowances 2019/20 Income Tax Main Personal Allowances Personal allowance Income limit for personal allowance (Note 1) Marriage allowance (Note 2) 12,500 100,000 1,250 Note 1: When income exceeds the limit a clawback applies reducing the personal allowance by 1 for every 2 above the limit. Note 2: Spouses/civil partners are able to transfer 1,250 of their unused personal allowance to their partner if both are basic rate taxpayers. Tax Rates and Taxable Bands Basic rate 0 - 37,500 Normal rate Dividend rate 20% 7.5% Higher rate 37,501 - 150,000 40% 32.5% Additional rate Over 150,000 45% 38.1% Note 3: A personal savings allowance applies at a 0% tax rate, applied after the personal allowance have been applied as follows: W E + - Aa- PoE EE -A- AaBbCcDc AaBbCel AaBbcc AaBb Cc A TCIMA Re.. Heading 1 T Normal T No Spac... H Paragraph Styles Note 3. A personal savings allowance applies at a 0% tax rate, applied after the personal allowance have been applied as follows: Basic rate taxpayers 1,000 Higher rate taxpayers 500 Additional rate taxpayers Nil Note 4. The first 2,000 of dividend income is taxed at 0% for all taxpayers. Note 5. The first 7,500 of rental income from renting part of the taxpayer's home is tax free if rent a room relief is claimed. Pension Scheme Limits Annual allowance Lifetime allowance Maximum contribution than can qualify for tax relief without earnings 40,000 1,055,000 3,600 PLEASE TURN OVER domi Aa. Po D-A- AaBbCcDc AaBbCel AaBbcc AaBb Cc A 1 CIMA Re... Heading 1 I Normal IT No Spac... He Paragraph Styles ISA Annual Subscription Limit Overall Individual savings Accounts limit Lifetime ISA (18 to 40) Help to buy ISA 1,000 (initial maximum investment) then 200 per month 20,000 4,000 Relevant to Employees Authorised Mileage Allowances When an employee has business usage of their own car Up to 10,000 miles Over 10,000 miles 45p 25p Car Benefit Percentage 0-50 g/km 51 75 g/km 76-94 g/km 95g/km (the base level of emissions) Each additional 5 g/km above the base level Diesel additional surcharge Maximum rate 16% 19% 22% 23% +1% +4% 37% Car Fuel Benefit The base figure for calculating car fuel benefits 24,100 Relevant to Traders A. A D-A- AaBbCcDc AaBbcc AaBbcc AaBb Cc A 1 CIMA Re.. Heading 1 1 Normal 1 No Spac... He Paragraph Styles Relevant to Traders Capital Allowances Plant and Machinery Main pool Special rate pool Energy & water efficient equipment 18% 6% 100% Motor Cars CO2 emissions up to 50 grams per kilometre CO2 emissions over 50 grams up to 110 grams per kilometre CO2 emissions over 110 grams per kilometre 100% 18% 6% Annual Investment allowance Rate of allowance Expenditure limit 100% 1,000,000 PLEASE TURN OVER om w ences Mailings Review View Help Design Layout O Search E ALT Aa. A D-A- AaBbCcDc AaBbCel AaBbcc AaBb Cc AaBb 1 CIMA Re... Heading 1 1 Normal 1 No Spac... Heading Styles Paragraph Houve 20,032 -100,000 per year Above 50,000 per year TZ.U 2.0 Secondary Class 1 employer 0 - 8,632 per year Above 8,632 per year Nil 13.8 Class 1A employer On benefits in kind 13.8 Sole traders Class 2 Paid weekly If earnings are above the small profits threshold of 6,365 pa 3pw Class 4 0 - 8,632 per year Above 8,632 - 50,000 per year Above 50,000 per year Nil 9.0 2.0 PLEASE TURN OVER com Font Paragraph NATIONAL INSURANCE CONTRIBUTIONS (SEE TAX TABLES FOR RATES) Class 1 - Primary . Paid by Employees - from age 16 Based on gross cash earnings Subject to upper earnings limit Reduces spendable income Payable under PAYE Class 1 - Secondary . . Paid by Employers - on employees age 16+ Based on gross cash earnings No upper limit Allowable deduction from trading Income Payable under PAYE . Class 1A . . Paid by Employer only at 13.8% Based on benefits in kind of Employee Allowable deduction from trading Income Payable 19 July following tax year . Class 2 . Self-employed aged 16 to 60/65 2.95 per week (subject to small earnings exception limit) Usually paid monthly by direct debit . Class 4 Self-employed aged 16 (at start of fiscal year) 9% on trading Income profits between limits Paid with income tax under seif-assessment English (United States cords 02 ere to search - Aa- Po AaBbCcDc AaBbCc AaBbcc AaBb C TCIMA Re... Heading 1 I Normal 1 No Spac.. --A- Paragraph Capital Gains Tax Styles Annual exemption Standard rate of tax (assets other than residential property) Higher rate of tax (assets other than residential property) Standard rate of tax on residential property Higher rate of tax on residential property 12,000 10% 20% 18% 28% Entrepreneurs' relief: For trading businesses and companies held for at least one year (minimum 5% employee shareholding) Lifetime limit of gains Rate of tax 10,000,000 10% Lease Premium Formulae Capital proportion is 2% (n-1) P Chattels Formulae Gains restricted to 5/3(gross proceeds - 6,000) National Insurance (not contracted-out rates) Primary Class 1 employees 0 - 8.632 per year Above 8,632 - 50,000 per year Above 50,000 per year Secondary % Nil 12.0 2.0 dom M Search A Aa A E D-A- AaBbCcDc AaBbcc AaBbcc AaBb Cc 1 CIMA Re... Heading 1 1 Normal 1 No Spac... Paragraph Styles Tax Rates and Allowances 2019/20 Income Tax Main Personal Allowances Personal allowance Income limit for personal allowance (Note 1) Marriage allowance (Note 2) 12,500 100,000 1,250 Note 1: When income exceeds the limit a clawback applies reducing the personal allowance by 1 for every 2 above the limit. Note 2: Spouses/civil partners are able to transfer 1,250 of their unused personal allowance to their partner if both are basic rate taxpayers. Tax Rates and Taxable Bands Basic rate 0 - 37,500 Normal rate Dividend rate 20% 7.5% Higher rate 37,501 - 150,000 40% 32.5% Additional rate Over 150,000 45% 38.1% Note 3: A personal savings allowance applies at a 0% tax rate, applied after the personal allowance have been applied as follows: W E + - Aa- PoE EE -A- AaBbCcDc AaBbCel AaBbcc AaBb Cc A TCIMA Re.. Heading 1 T Normal T No Spac... H Paragraph Styles Note 3. A personal savings allowance applies at a 0% tax rate, applied after the personal allowance have been applied as follows: Basic rate taxpayers 1,000 Higher rate taxpayers 500 Additional rate taxpayers Nil Note 4. The first 2,000 of dividend income is taxed at 0% for all taxpayers. Note 5. The first 7,500 of rental income from renting part of the taxpayer's home is tax free if rent a room relief is claimed. Pension Scheme Limits Annual allowance Lifetime allowance Maximum contribution than can qualify for tax relief without earnings 40,000 1,055,000 3,600 PLEASE TURN OVER domi Aa. Po D-A- AaBbCcDc AaBbCel AaBbcc AaBb Cc A 1 CIMA Re... Heading 1 I Normal IT No Spac... He Paragraph Styles ISA Annual Subscription Limit Overall Individual savings Accounts limit Lifetime ISA (18 to 40) Help to buy ISA 1,000 (initial maximum investment) then 200 per month 20,000 4,000 Relevant to Employees Authorised Mileage Allowances When an employee has business usage of their own car Up to 10,000 miles Over 10,000 miles 45p 25p Car Benefit Percentage 0-50 g/km 51 75 g/km 76-94 g/km 95g/km (the base level of emissions) Each additional 5 g/km above the base level Diesel additional surcharge Maximum rate 16% 19% 22% 23% +1% +4% 37% Car Fuel Benefit The base figure for calculating car fuel benefits 24,100 Relevant to Traders A. A D-A- AaBbCcDc AaBbcc AaBbcc AaBb Cc A 1 CIMA Re.. Heading 1 1 Normal 1 No Spac... He Paragraph Styles Relevant to Traders Capital Allowances Plant and Machinery Main pool Special rate pool Energy & water efficient equipment 18% 6% 100% Motor Cars CO2 emissions up to 50 grams per kilometre CO2 emissions over 50 grams up to 110 grams per kilometre CO2 emissions over 110 grams per kilometre 100% 18% 6% Annual Investment allowance Rate of allowance Expenditure limit 100% 1,000,000 PLEASE TURN OVER om w ences Mailings Review View Help Design Layout O Search E ALT Aa. A D-A- AaBbCcDc AaBbCel AaBbcc AaBb Cc AaBb 1 CIMA Re... Heading 1 1 Normal 1 No Spac... Heading Styles Paragraph Houve 20,032 -100,000 per year Above 50,000 per year TZ.U 2.0 Secondary Class 1 employer 0 - 8,632 per year Above 8,632 per year Nil 13.8 Class 1A employer On benefits in kind 13.8 Sole traders Class 2 Paid weekly If earnings are above the small profits threshold of 6,365 pa 3pw Class 4 0 - 8,632 per year Above 8,632 - 50,000 per year Above 50,000 per year Nil 9.0 2.0 PLEASE TURN OVER com Font Paragraph NATIONAL INSURANCE CONTRIBUTIONS (SEE TAX TABLES FOR RATES) Class 1 - Primary . Paid by Employees - from age 16 Based on gross cash earnings Subject to upper earnings limit Reduces spendable income Payable under PAYE Class 1 - Secondary . . Paid by Employers - on employees age 16+ Based on gross cash earnings No upper limit Allowable deduction from trading Income Payable under PAYE . Class 1A . . Paid by Employer only at 13.8% Based on benefits in kind of Employee Allowable deduction from trading Income Payable 19 July following tax year . Class 2 . Self-employed aged 16 to 60/65 2.95 per week (subject to small earnings exception limit) Usually paid monthly by direct debit . Class 4 Self-employed aged 16 (at start of fiscal year) 9% on trading Income profits between limits Paid with income tax under seif-assessment English (United States cords 02 ere to search - Aa- Po AaBbCcDc AaBbCc AaBbcc AaBb C TCIMA Re... Heading 1 I Normal 1 No Spac.. --A- Paragraph Capital Gains Tax Styles Annual exemption Standard rate of tax (assets other than residential property) Higher rate of tax (assets other than residential property) Standard rate of tax on residential property Higher rate of tax on residential property 12,000 10% 20% 18% 28% Entrepreneurs' relief: For trading businesses and companies held for at least one year (minimum 5% employee shareholding) Lifetime limit of gains Rate of tax 10,000,000 10% Lease Premium Formulae Capital proportion is 2% (n-1) P Chattels Formulae Gains restricted to 5/3(gross proceeds - 6,000) National Insurance (not contracted-out rates) Primary Class 1 employees 0 - 8.632 per year Above 8,632 - 50,000 per year Above 50,000 per year Secondary % Nil 12.0 2.0 dom M