Zac’s income for 2020-21is: -                                                                  

                                                                                          

Pension	£6,200
Building society interest	£5,800
Dividends received	£6,400
Premium bonds win	£3,000

 

Zac also owns a log cabin which is rented out at a rent of £4,500 per annum.  This increased to £5,000 per annum from 1st October 2020. All rent was paid in arrears on time on the last day of each month. During the tax year he fitted it with a washing machine costing £400, as the tenant complained that it did not have one.  He also replaced the fridge, which originally cost £300, with a new fridge-freezer, complete with ice maker, costing £1,000. Zac paid for all electricity, council tax and water rates for the cabin, which amounted to £950 in 2020-21.                                               

Brooke is employed by Parada Ltd with a salary of £74,400 per annum. This increased on 1st January 2021 to £74,760                                                  

 

She has also received the following bonuses:-                                             

£7,000 based on accounts for the year ended 31 March 2020 and paid on 1 July 2020;                        

£8,000 based on accounts for the year ended 31 March 2021 and paid on 2 July 2021.

                                                                        

Parada Ltd provides her with a diesel powered company car, which cost £17,200 (list price £18,200) and has a CO2 emissions figure of 179 g/km. During 2020-21the company also paid for repairs costing £1,200 and for fuel (including fuel for private motoring) costing £2,200. Approximately 35% of travel is for private purposes.                                           

 

She lives in a house provided by the company.  This cost £230,000 in July 2018 and has a gross rateable value of £2,300. The company also pay for a gardener, whose wages in 2020-21were £2,500. During 2020-21the company also contributed £1,400 towards her electricity bill.                                   

She uses two rooms as offices and 20% business use has been agreed.                                    

The company allows her to use a curved, super high definition television, which cost the company £3,800, although it retails at £4,200.

                  

She also has a generous expense allowance of £2,400 per annum.  In 2020-21she spent £1,500 on clothes, £400 on business travel and £500 on entertaining clients.                                                                                

                                                                                          

Parada Ltd has already deducted PAYE for 2020-21of £29,700.                     

Her only other income for 2020-21was £2,200 bank interest received.  

During 2020-21 she made Gift Aid payments of £560.                                          

 

 

 

 

Required:                                                                                    

Calculate for 2020-21:-                                                                            

the rental income assessable on Zac
the employment income assessable on Brooke
the income tax payable/(repayable) by
Zac
Brooke