Sarah graduated from university in July 2019 and started her first accounting job on 6 April 2020 with an annual salary of £31,000. Her employer offered to provide Sarah with use of a diesel car which the company purchased (new) in March 2020 for £23,300. The car has a list price £24,500 and CO2 fuel emissions 104g/km. Sarah has a choice: - If she chooses to take the car option she will be required to contribute £15 a month towards the car’s running costs. - If she decides not to take the car she will be offered £7,000cash(each year) as optional remuneration. 

Calculate the benefit in kind Sarah will be taxed on if she chooses.