Question
Pritti is the managing director of a company and earns a basic annual salary of 120,000. She also received benefits in kind from the company
Pritti is the managing director of a company and earns a basic annual salary of 120,000. She also received benefits in kind from the company during 2019/20.as follows:
The use of a company flat which has an annual value of 9,000 and which cost her employer 480,000. She made no contribution towards the cost of the flat or its running costs for which her employer paid 4,500 during the year. The company also furnished the flat at a cost of 12,500. Her occupation was not job related.
A diesel engine company car was also provided which was one year old and had a list price when purchased of 17,000. The company pays all the running costs. The car has a CO2 emissions factor of 192g/km. She pays 30 a month to her employer as a condition of the car being made available for her private use.
A company loan of 60,000 has also been made available to her for which she pays 2.5% interest per year. No part of the loan was repaid during the year.
Her company also supplies her with a mobile phone costing 1,000 and a free parking space at work which is worth 3,000 a year.
Required: You are required to calculate the income tax payable by Pritti for the year 2019/20.
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