Early in February 2022 Vera was told that she would be made redundant, this happened on 6 April 2022. The severance package that she received in 2022/23 was: Statutory redundancy £4,000 Non-statutory redundancy, ex gratia £20,000 Signing a non-disclosure/non-competition agreement £10,000 Required: Outline the tax treatment of the redundancy package and explain how the tax liability on the redundancy package could have been reduced if the £34,000 has been split differently.

Early in February 2022 Vera was told that she would be made redundant, this happened on 6 April 2022. The severance package that she received in 2022/23 was: Statutory redundancy £4,000 Non-statutory redundancy, ex gratia £20,000 Signing a non-disclosure/non-competition agreement £10,000 Required: Outline the tax treatment of the redundancy package and explain how the tax liability on the redundancy package could have been reduced if the £34,000 has been split differently.

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter18: Accounting Periods And Methods

Section: Chapter Questions

Problem 29CE

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3.2) Early in February 2022 Vera was told that she would be made redundant, this happened on 6 April 2022. The severance package that she received in 2022/23 was: Statutory redundancy Non-statutory redundancy, ex gratia Signing a non-disclosure/non-competition agreement £4,000 £20,000 £10,000 Required: Outline the tax treatment of the redundancy package and explain how the tax liability on the redundancy package could have been reduced if the £34,000 has been split differently.
On 1 April 2019, Mia accepts an offer of employment from Priceline Pty Ltd. Her salary package includes a company car worth $55,000 Throughout the FBT year Mia paid $3,500 for petrol. Mia did not keep a logbook. Priceline is entitled to claim input taxed credits for GST purposes. Required: Advise Priceline Pty Ltd as to the relevant section of the FBTAA to apply... then show the relevant formula and... then calculate the fringe benefits tax payable (rounded to the nearest dollar) for the 2020 FBT year.
According to Tax Accounting rules, which of the following expenses have been incurred (and thus fully deductible) during the 2020 financial year? Select one: Invoice of $2,000 handed to a rental property owner on 29 June 2020. All paint work has been completed. The Invoice has not been paid.On 29 June 2020, one of ABC Pty Ltd's employees notified the company that she might be taking long service leave for the whole of November and December 2020On 29 June 2020, GHD Pty Ltd contacted SpotLess Pty Ltd about providing cleaning services to its head office. GHD Pty Ltd is fairly sure it will hire SpotLess Pty Ltd, yet is still waiting on a quoteOn 29 June 2020, KLM Pty Ltd had doubts whether an outstanding debt would be paid. The debt is finally written off on 5 July 2020On 29 June 2020, XYZ Pty Ltd pre-paid $25,000 for IT support services that would be rendered to the company over a five year period
Jenny received a gross salary of £50,000 in 2022/23. She also received interest income of £1,000 and dividends of £5,000. On 10 September 2023 Jenny submitted her self-assessment tax return for 2022/23. Select the correct time limits that apply in relation to Jenny's self-assessment return for 2022/23.
1-The employer provided the accommodation to its employee costing £ 80,000 with annual value of £1,000 and the official rate of interest of 2.5% during the tax year 2019/20. Accommodation is not job related. Which one of the following is taxable benefit from accommodation as per the UK tax laws? O a. None of the options b. £125 O C. £1,125 O d. £1,000
Julie, a single taxpayer, has completed her 2023 Schedule C and her net loss is $40,000. Her only other income is wages of $30,000. Julie takes the standard deduction of $13,850 in 2023. Question Content Area a. Calculate Julie's taxable income or loss.fill in the blank 1 of 2$ fill in the blank 2 of 2 Feedback Area Feedback The net operating loss provision is primarily designed to provide relief for trade or business losses. Generally, only losses from the operation of a trade or business, casualty and theft losses, or confiscation losses can generate a net operating loss. The TCJA modified the rules regarding the carry back and carry forward of NOLs. Question Content Area b. Calculate the business and nonbusiness portions of her taxable income or loss.Business: fill in the blank 1 of 4$ fill in the blank 2 of 4 Nonbusiness: fill in the blank 3 of 4$ fill in the blank 4 of 4 Feedback Area Feedback Partially correct…
A taxpayer received a notice from the BIR to file his 2019 income tax return not later than January 15, 2021. The tax due per his return is P80,000. How much is the surcharge penalty? a. P9,600 b. P20,000 c. P40,000 d. P16,000 e. Answer not given
Sophie has the following information about her payments of tax for 2017/18: Payment on account 1 £2,000 paid in full on 31 March 2018 Payment on account 2 £2,000 paid in full on 31 July 2018 Final balancing payment £3,000 paid in full on 16 March 2019 Calculate any penalties due. Right to amend an income tax/capital gains tax return: Even once a tax return has been submitted, thetaxpayer has a right to amend it for any mistakes as long as it is within the time frame below. HMRC also have a right to amend the return HMRC- Nine months form the date the return is actually filed Taxpayer- 12 months from the usualsubmission date
Tax Agent's Fees and GIC imposed by the ATO On 1 June 2020, Barry received and paid the professional services invoice from his previous registered tax agent in Hendra for the preparation and lodgment of his 2019 income tax return. The tax agent's fee was $570. Barry also informs you that as his tax agent lodged his 2019 income tax return more than three weeks late, the Australian Taxation Office charged Barry a general interest charge (GIC) of $32. The ATO also charged Barry one penalty unit, being $210. Barry paid both of these amounts (totalling $242) directly to the ATO on 28 June 2020. Determine assessability and deductibility income Then please calculate the assessable income for the financial period 2020.
How do the all events and economic performance requirements apply to the following transactions by an accrual basis taxpayer? a. The company guarantees its products for six months. At the end of 2019, customers had made valid claims for 600,000 that were not paid until 2020. Also, the company estimates that another 400,000 in claims from 2019 sales will be filed and paid in 2020. b. The accrual basis taxpayer reported 200,000 in corporate taxable income for 2019. The state income tax rate was 6%. The corporation paid 7,000 in estimated state income taxes in 2019 and paid 2,000 on 2018 state income taxes when it filed its 2018 state income tax return in March 2019. The company filed its 2019 state income tax return in March 2020 and paid the remaining 5,000 of its 2019 state income tax liability. c. An employee was involved in an accident while making a sales call. The company paid the injured victim 15,000 in 2019 and agreed to pay the victim 15,000 a year for the next nine years.