ACFI290 week 9 exercises
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ACFI290 week 9 exercises
1. George is employed by Fit Club Ltd as a personal trainer. During the tax year 2020/21 George is
paid an annual salary of £45,000, from which PAYE has been deducted of £13,772. During 2020/21, George received the following benefits from Fit Club Ltd:
• From 6 November 2020, he was provided with a petrol company car with CO2 emissions of 135g/km. The car’s list price is £12,000 and it was registered on April 4 2020. George pays £75 per month towards general running costs of the car.
• On 31 January 2021, George was given a bonus payment of £1000 as a reward for attracting in a high level of new business following the Christmas period.
• Supplied with an apartment in the city centre close to work throughout the year. The annual rateable value of the apartment is £7,500. The house cost Fit Club Ltd £150,000. George pays £500 per month towards running costs.
• George and the rest of the team were taken on an “away day” to a country hotel as a reward for a very good year of sales for the company. Fit Club Ltd paid for this trip costing £120 per head.
In addition, George has received rental income from a flat which he has rented out for the full year at a rate of £750 per month. He also received dividends of £6,000 and building society interest of £3,000.
George made gifts to charity of £1,000 during the year.
Required:
Calculate George’s income tax payable for the year 2020/21.
Note: Assume an official rate of interest throughout 2020/21 of 4%.
2. Stephanos is 37 years old. In the tax year 2020/21 he was employed by Computer Systems Inc. in their IT department. He received a gross salary of £43,000, from which PAYE had been deducted of £10,753. He also received the following benefits:
• A diesel company car with CO2 emissions of 150g/km. The car had a list price of £32,000 and was registered on April 6 2020. Stephanos paid £6,000 towards the capital payment of the car and pays a further £200 per month towards its running costs. Computer Systems Inc pay for all fuel used by Stephanos.
• Stephanos is provided with living accommodation by his employer. It is not job-related. The apartment he stays in was purchased by Computer Systems Inc for £265,000. It has an annual value of £4,000. Stephanos pays £150 towards the property every month.
• Stephanos is provided with a mobile phone and uses £47 of calls each month.
• He has use of a company hi-tech laptop which originally cost the company £3,500 when they first gave it to Stephanos on 6 April 2018. On 5 April 2021 Stephanos buys the laptop at its market value on that day of £1,000.
• He uses a car park space at the office which costs the company £12,000 per year to rent.
Stephanos also has rental income of £437 per month in relation to a private property he owns, £1,500 of interest from his building society and £6,000 of dividend income.
Stephanos has also made charity donations under the gift aid scheme of £3,000.
Required:
Calculate Stephanos’s income tax payable for 2020/21.
Note: Assume an official rate of interest throughout 2020/21 of 4%.
2022-01-15