Jim is the managing director of a company and earns a basic salary in 2021-22 of 225,000.
Question:
Jim is the managing director of a company and earns a basic salary in 2021-22 of £225,000. He receives benefits from the company during the year as follows:
(a) He is provided with the use of a company house which has an annual value of £9,750 and which cost his employer £345,000 in 2018. Jim makes no contribution towards the cost of the house or towards its running costs which cost the company £3,450 in 2021-22. The company has also furnished the house at a cost of £28,500. Jim's occupation of the house is not job-related.
(b) He is provided with a petrol-engined company car which had a list price when new of £45,000. The car was registered in February 2021 and has an emission rating of 108g/km. The company pays all running costs.
(c) He is provided with a company loan of £50,000 on which he is charged interest at 0.5% per annum.
Calculate Jim's taxable benefits in 2021-22 (the official rate of interest is 2.25% p.a.).
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