Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Task 1: part 2: For 2020/21 (for next year), the employer of Mr. Hilal allowed him to opt for Mileage allowance instead of the car

image text in transcribed
Task 1: part 2: For 2020/21 (for next year), the employer of Mr. Hilal allowed him to opt for Mileage allowance instead of the car benefit. Under mileage allowance, he must use his car for business travel and the company agreed to pay 0.50 per mile. Based on the estimation, he must travel 20,000 miles for business purposes in the next year 2020/21. Also, the company agreed to give the House Rent Allowance of 6,000 instead of Accommodation benefit. b) As a tax adviser, for 2020/21, advise Mr.Hilal whether to accept mileage allowance and/or House Rent Allowance instead of Car Benefit and Accommodation Benefit or let him continue as it is like 2019/20. Your advice is based on the tax saving by accepting the above options. Assume that tax rate and allowances of 2019/20 will be applicable for 2020/21 (For answering this question, it is not necessary to calculate various incomes from the beginning, you can go for incremental approach). (2 Marks)

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

Advances In Accounting Volume 23

Authors: Philip M J Reckers

1st Edition

0762314257, 9780762314256

More Books

Students also viewed these Accounting questions

Question

What is a descriptive quantitaive research design

Answered: 1 week ago