This is a taxation subject

Task 1: part 1: 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 accessones 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 hum an accommodation, which Company purchased on 25 January 2004. The market value of the property ou 10 January 2016 was 100,000. The details of the purchase price and the cost incurred by the company are listed below 70.000 Jan 2004 Dec 2005 May 2016 June 2016 Nov 2019 Purchase Pnce of property Cost of Improvement Cost of Improvement Cost of Painting the building Cost of Improvement 12,000 10.000 5,000 40,000 The Annual Rateable Value of the propert was 6,000 and Hilal repaid 1,500 to her employer for the use of the house for personal purposes Go 6 December 2019, Company also provided him home entinen ystem costing -9,000 for las personal use The company pranted him a loan of 60,000 o 6 April 2019 for the marriage of his family members. Ou 30 November 2019. Hilal basrepad 20,000 to the employer Balance loan are outstanding on the tax year end of April 2020. He paid 300 interest to the company for the betrowed loan. (Use the Avere method) Dhuning the year Hilal spent 10 nights within the UK for employment purposes Flow- paid per sigutas daily Allowance The company provided him 2 male phones both for barness and personal use the cost of theist mobile place was 2400 and the one was 2500 The company ako provided him of Van with fuel for pronal purposes during the 2019 20 4 t task 5 / 11 53.4% Jet Other than the salary he had investment income from vanous sources. He was owning 3 houses in the UK and received a Rental income of 40,000. He invested in Debentures of UK company and received an Interest income of 32,000. He was a partner in a partnership firm had a 60% share in the partnership profit. The profit of the partnerlup firm for the year ended 31/12/2019 was 20,000 As of now, he has not become a member of any pension scheme such as Personal Pension Scheme and Occupational Pension scheme. He is not having any habit of donating money directly to the charity or through a Payroll deduction scheme 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) Task 1: part 2: For 2020/21 (for next year), the employer of M 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 proposes in the sext year 2020 21. Also, the company agreed to give the House Rest 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) Task 1: Part 3: Mr Hibad felt that the tax liability was too high in 2019/20. He wants to reduce the tax in 2020/21 awards. He heard something about contribution to Personal Pension Scheme and or Occupation pension scheme may be directly or through payroll deduction scheme and donating to charity nuly be directly or through his employer c) Wur me the tax competice (tax is), il se contributes 18.000 donation and F480 to the personal Pension scheme? He is not intending to contribute himell any amount to the Occupational pension scheme, but luis caployer will contribute 19.000 to the scheme Task 1: part 1 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 custs 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 Dee 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 on 6 December 2019. Company also provided him home entertainment system costing 9,000 for his personale 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 April 2020. He paid 300 interest to the company for the borrowed loan. (Use the Average method). During the year Hilal spent 10 tights within the UK for employment purposes. Enoployer- 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 201920 Other than the salary he had investment income from various sources. He was owning 3 houses in the UK and received a Rental income of 40.000. He invested in Debentures of UK company and received an Interest income of 32,000. He was a partner in a partnership firm had a share in the partnership profit. The profit of the partnership firm for the year ended 31/12/2019 was 20,000 As of now, he has to become a member of any pension scheme such as Personal Pension Scheme and Occupational Pension scheme. He is not having any habit of donating money directly to the charity or through a Payroll deduction scheine You are required to calculate the tax liability and tax payable of Mr.Hilal for the tax year 2019/20. Also, calculate NIC class I and IA. (6 marks) 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 202021. 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 Cur 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) Task 1: Part 3: Mr.Hilal felt that the tax liability was too high in 2019/20. He wants to reduce the tax in 202021 cewards. He heard something about contribution to Personal Pension Scheme and'or Occupation pension scheme may be directly or through payroll deduction scheme and donating to charity may be directly or through his employer, c) What are the tax consequences (tax savings. if he contributes 18,000 donation and 4,800 to the personal Pension scheme? He is not intending to contribute himself any amount to the Occupational pension scheme, but his employer will contribute 19.000 10 the same scheme many Un money to the charity or through a Payroll deduction scheme. 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 I and IA. (6 marks) 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) Task 1: Part 3: Mr.Hilal felt that the tax liability was too high in 2019/20. He wants to reduce the tax in 2020 21 onwards. He heard something about contribution to Personal Pension Scheme and or Occupation pension scheme may be directly or through payroll deduction scheme and donating to charity may be directly or through his employer. c) What are the tax consequences (tax savings), if he contributes 8,000 donation and 4,800 to the personal Pension scheme? He is not intending to contribute himself any amount to the Occupational pension scheme, but his employer will contribute 9,000 to the same scheme 5 To answer this question, take Question (a) as a base, assuming the tax rate and allowances of 2019/20 will be applicable for 202021. Give clear explanation i given information is not affecting the tax. (2 marks) Task 1: part 1: 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 accessones 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 hum an accommodation, which Company purchased on 25 January 2004. The market value of the property ou 10 January 2016 was 100,000. The details of the purchase price and the cost incurred by the company are listed below 70.000 Jan 2004 Dec 2005 May 2016 June 2016 Nov 2019 Purchase Pnce of property Cost of Improvement Cost of Improvement Cost of Painting the building Cost of Improvement 12,000 10.000 5,000 40,000 The Annual Rateable Value of the propert was 6,000 and Hilal repaid 1,500 to her employer for the use of the house for personal purposes Go 6 December 2019, Company also provided him home entinen ystem costing -9,000 for las personal use The company pranted him a loan of 60,000 o 6 April 2019 for the marriage of his family members. Ou 30 November 2019. Hilal basrepad 20,000 to the employer Balance loan are outstanding on the tax year end of April 2020. He paid 300 interest to the company for the betrowed loan. (Use the Avere method) Dhuning the year Hilal spent 10 nights within the UK for employment purposes Flow- paid per sigutas daily Allowance The company provided him 2 male phones both for barness and personal use the cost of theist mobile place was 2400 and the one was 2500 The company ako provided him of Van with fuel for pronal purposes during the 2019 20 4 t task 5 / 11 53.4% Jet Other than the salary he had investment income from vanous sources. He was owning 3 houses in the UK and received a Rental income of 40,000. He invested in Debentures of UK company and received an Interest income of 32,000. He was a partner in a partnership firm had a 60% share in the partnership profit. The profit of the partnerlup firm for the year ended 31/12/2019 was 20,000 As of now, he has not become a member of any pension scheme such as Personal Pension Scheme and Occupational Pension scheme. He is not having any habit of donating money directly to the charity or through a Payroll deduction scheme 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) Task 1: part 2: For 2020/21 (for next year), the employer of M 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 proposes in the sext year 2020 21. Also, the company agreed to give the House Rest 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) Task 1: Part 3: Mr Hibad felt that the tax liability was too high in 2019/20. He wants to reduce the tax in 2020/21 awards. He heard something about contribution to Personal Pension Scheme and or Occupation pension scheme may be directly or through payroll deduction scheme and donating to charity nuly be directly or through his employer c) Wur me the tax competice (tax is), il se contributes 18.000 donation and F480 to the personal Pension scheme? He is not intending to contribute himell any amount to the Occupational pension scheme, but luis caployer will contribute 19.000 to the scheme Task 1: part 1 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 custs 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 Dee 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 on 6 December 2019. Company also provided him home entertainment system costing 9,000 for his personale 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 April 2020. He paid 300 interest to the company for the borrowed loan. (Use the Average method). During the year Hilal spent 10 tights within the UK for employment purposes. Enoployer- 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 201920 Other than the salary he had investment income from various sources. He was owning 3 houses in the UK and received a Rental income of 40.000. He invested in Debentures of UK company and received an Interest income of 32,000. He was a partner in a partnership firm had a share in the partnership profit. The profit of the partnership firm for the year ended 31/12/2019 was 20,000 As of now, he has to become a member of any pension scheme such as Personal Pension Scheme and Occupational Pension scheme. He is not having any habit of donating money directly to the charity or through a Payroll deduction scheine You are required to calculate the tax liability and tax payable of Mr.Hilal for the tax year 2019/20. Also, calculate NIC class I and IA. (6 marks) 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 202021. 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 Cur 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) Task 1: Part 3: Mr.Hilal felt that the tax liability was too high in 2019/20. He wants to reduce the tax in 202021 cewards. He heard something about contribution to Personal Pension Scheme and'or Occupation pension scheme may be directly or through payroll deduction scheme and donating to charity may be directly or through his employer, c) What are the tax consequences (tax savings. if he contributes 18,000 donation and 4,800 to the personal Pension scheme? He is not intending to contribute himself any amount to the Occupational pension scheme, but his employer will contribute 19.000 10 the same scheme many Un money to the charity or through a Payroll deduction scheme. 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 I and IA. (6 marks) 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) Task 1: Part 3: Mr.Hilal felt that the tax liability was too high in 2019/20. He wants to reduce the tax in 2020 21 onwards. He heard something about contribution to Personal Pension Scheme and or Occupation pension scheme may be directly or through payroll deduction scheme and donating to charity may be directly or through his employer. c) What are the tax consequences (tax savings), if he contributes 8,000 donation and 4,800 to the personal Pension scheme? He is not intending to contribute himself any amount to the Occupational pension scheme, but his employer will contribute 9,000 to the same scheme 5 To answer this question, take Question (a) as a base, assuming the tax rate and allowances of 2019/20 will be applicable for 202021. Give clear explanation i given information is not affecting the tax. (2 marks)