The below information is for the tax year 2019/20 (for the current year): Mr.Hilal is a UK Resident, working in a large UK company for a salary of 80,000. He received a bonus of 5,000 during the current year. He contributed 1% of his salary to a professional body for employment use and spent 500 on the purchasing office uniform. He received a company car (Diesel car) for business and personal use. The CO2 emission of the car is 119 gms per km. the cost of the car was 28,000 but the list price was 30,000. The company spent 3,000 on the accessories of the car. Mr.Hilal contributed 8,000 for the capital cost of the car and 1000 for the use of the car. The company spent all the running

costs of the car including fuel. The car has not met RDE2 standards. On 10 January 2016, Company provided him an accommodation, which Company purchased on 25 January 2004. The market value of the property on 10 January 2016 was 100,000. The details of the purchase price and the cost incurred by the company are listed below:

Jan 2004

Purchase Price of property

70,000

Dec 2005

Cost of Improvement

12,000

May 2016

Cost of Improvement

10,000

June 2016

Cost of Painting the building

5,000

Nov 2019

Cost of Improvement

40,000

The Annual Rateable Value of the property was 6,000 and Hilal repaid 1,500 to her employer for the use of the house for personal purposes. 0n 6 December 2019, Company also provided him home entertainment system costing 9,000 for his personal use.

The company granted him a loan of 60,000 on 6 April 2019 for the marriage of his family members. On 30 November 2019, Hilal has repaid 20,000 to the employer. Balance loans are outstanding on the tax year-end of 5 April 2020. He paid 300 interest to the company for

the borrowed loan. (Use the Average method). During the year Hilal spent 10 nights within the UK for employment purposes. Employer- paid 4 per night as daily Allowance. The company provided him 2 mobile phones both for business and personal use. The cost of the 1st mobile phone was 400 and the 2nd one was 500. The company also provided him the use of Van with fuel for personal purposes during the year 2019/20.

a) You are required to calculate the tax liability and tax payable of Mr.Hilal for the tax year 2019/20. Also, calculate NIC class 1 and 1A. (6 marks)