Calculate for Fred the correct amount of employment remuneration that he should include on his tax return for 2021/22. [
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On 1st July 2021, Fred was appointed as a musician in an international hotel chain earning £18,000 as a basic annual salary. In addition, he received a monthly commission of £250 for evening performances during the 2021/22 tax year. He received a diesel car worth £28,000 with CO2 emissions of 157g/km from his employer. His employer contributed £250 towards his fuel expenses each month he had the car. He was pleased to be provided with a work mobile, paid for by his employer, worth £599, and his employer paid for his annual eye test at the opticians.
Calculate for Fred the correct amount of employment remuneration that he should include on his tax return for 2021/22. [Only remuneration, not
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- On 1st July 2021, Fred was appointed as a musician in an international hotel chain earning £18,000 as a basic annual salary. In addition, he received a monthly commission of £250 for evening performances during the 2021/22 tax year. He received a diesel car worth £28,000 with CO2 emissions of 157g/km from his employer. His employer contributed £250 towards his fuel expenses each month he had the car. He was pleased to be provided with a work mobile, paid for by his employer, worth £599, and his employer paid for his annual eye test at the opticians. Fred recently invested a legacy on the London Stock Exchange, earning dividends of £2,440. He also holds a cash ISA which earned £645 interest. If Fred also had savings that were not in an ISA, how would interest on this be taxed? What rate of tax would he pay on it?Ameer is employed by a UK company and earns £50,000 per annum. During the tax year 2020–21 he received the following benefits: – The use of a flat. This had been purchased by the company in 2018 for £240,000. The flat has an annual rateable value of £3,200. Ameer paid £200 a month to his employer for the use of the flat. The flat is not eligible as job related accommodation. – The use of furniture in the flat. This had an original market value of £8,000 in 2020 when it was purchased by the company for the use of company employees. – A motor mileage allowance. Ameer used his own car to travel 18,000 miles in the tax year 2020–21 of which 14,000 were on business. The company paid Ameer 50p a mile for each business mile travelled. – A parking place at the company office. This costs the company £600 a year. In 2020/21, Ameer pays expenses out of his earnings as follows:- a. He pays subscriptions to professional bodies of £360. b. He makes business telephone calls…Cook is a teacher. His job at a boarding school requires him to live in a house in the school grounds. The house cost £70000 three years ago and its annual value is £650. In 2020/21 the company pays an electricity bill of £550, a gas bill of £400, a gardener’s bill of £750 and redecoration costs £1800. Cook makes a monthly contribution of £50 for his accommodation. He earns a gross salary of £28850 and £1450 occupational pension contributions. Requirement: Calculate Cook’s taxable employment income for 2020/21.
- Rowena is employed as an architect throughout 2020/21 and received the following income during the tax year 2020/21:i) Salary of £114,000 (after her employer had deducted PAYE of £39,950).ii) Her employer provides Rowena with a parking space at work. If Rowena had to payfor her own parking, close to her office, the annual cost would be £900 per annum.iii) Bankinterestof£400.iv) Building society interest of £220.v) Dividends from a UK company of £4,500.vi) Premium bond prize of £150.vii) Property income of £24,000.During the year, Rowena made a charitable donation of £1,000 under the Gift Aid scheme and she paid her annual £500 subscription to the architects’ professional body, which is approved by HMRC.Required (you must answer both parts (a) and (b) to this question):a) Prepare the income tax computation for Rowena for 2020/21, showing the incometax liability and the tax due to be paid.17 marksb) Appraise the UK income tax system with refence to Adam Smith’s canon of equity.Sam is self-employed and prepares accounts annually to 5 April. At 6 April 2022, the written down value brought forward in the main pool was £26, 000. During the year to 5 April 2023, he purchased a car with emissions of 45 g/km for £19, 200 and another car with emissions of 104 g/km for £25, 600. What are the maximum capital allowances that Sam can claim for the year to 5 April 2023? Question 6Answer a. £12, 744 b. £25, 416 c. £9, 672 d. £28, 488During the fiscal year of 2023/24, John received £40 of income tax repayment interest relating to overpaid income tax from 2022/23. John has been employed part-time by Medical Support Ltd since 2013. He received the following remuneration package in 2023/24: · Salary £15,000 per year; · Eye test which would have cost £20, offered to all employees who use computers. · Private medical insurance costing the company £800, and which would have cost John £1,000 had he bought it directly from the insurers; and · From 1 June 2023, use of a van for significant private use with CO2 emissions of 130 g/km. The van had a list price of £10,000 and Medical Support Ltd paid for all John’s private fuel. John received £1,500 of dividends in January 2024 from an ISA. John has also run his own business as a sole trader for many years. Therefore, he has calculated his taxable trading profits for 2023/24 to be £20,600. In arriving at his taxable trading profits, he deducted the following amounts. · £200…
- William was the marketing director of a trading company which carries business in Hong Kong. He received an annual salary of HK$700,000 for the year ended 31 March 2022. In December 2021, William took a 10-days trip to Canada to visit his son who is now taking a full-time degree program in the University of Canada. He spent one afternoon to visit one of the major customers. He spent HK40,000 for the entire trip and his employer fully reimbursed him. During the period from 1 April 2021 to 30 September 2021, he and his family lived in a hotel of two rooms which was rented for HK$20,000 per month by his employer. Starting from 1 October 2021 he and his family lived in a flat which was rented by him for HK$25,000 per month and his employer only reimbursed him HK$24,000 per month. Documentary evidence had to be submitted for the reimbursement. During the year ended 31 Mach 2022, William made the following payment:- 1) Paid annual membership fee of HK$4,000 to Chartered Institute of…Susan received £ 15,000 salaries and £ 10,000 bonuses during the tax year 2020-21. Her employer provided following benefits during the yearAccommodation in a building costing £ 78,000. The building has an annual rental value of £ 3,400 and Susan’s employer pays £ 3,500 rent Per year.Mileage allowance of 48p per mile was paid by the employer. Susan drove her own car for 12,647 miles in discharging her employment duties during the year.Outstanding amount of beneficial loan received from the employer @ 1.2% per annum as on 6th April 2020 was £ 12,800. She repaid 7,000 on 6th December 2020.Calculate Susan’s taxable benefits and taxable employment income for the tax year 2020-21Omar lives in a company flat that cost his employer £105,000 in June 2015.The annual value of the flat is £2,500. The accommodation is not job-related. Calculate Omar taxable benefit for the tax year 2020/21
- Mr. Albert lives in a company flat accommodation which is not job related. The cost of the accommodation for the employer was £75,000. The annual value of the flat is £4,000. He also received cash bonus of 2,000 on 6th June 2020. Assuming that the official rate interest was 2.5%. The taxable accommodation benefit to be included in his employment income for the tax year 2019-20 was £ a. 4,000 b. 1,875 c. 4,250 d. 7,875Leonard is employed and received a gross salary of £3,452 per month during tax year 2021-22. He also has a small business and paid 52 Class 2 NICs for the year. His trading income for 2021-22 was £12,160. Calculate the refund of NICs due to Leonard for the year (if any).Rose works as a quality in-charge in an equipment manufacturing firm in the UK. During the tax year 2019/20, she has earned income from different sources. She earned £88,800 through employment income. She is also doing a business through which she earned a taxable income of £16,000. She invested £82,000 in equity and earned £10,800 dividend income. In the year 2018, she made investment in business society and received £4,600 interest during this tax year. She also invested ISA and received interest income of £24,000. She has a taxable rental income of £4,000 from properties. Situation 1 You are required to calculate Rose’s income tax liability for the year 2019/20. Situation 2 Assume Rose has paid £4,000 towards a gift aid donation during the year 2019/10, re-assess her tax liability.