working out benefits in kind

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pamelacooke
pamelacooke Registered Posts: 5 New contributor 🐸
in AAT Level 4 (Level 8 in Scotland)
could someone tell me how I calculate the assessable benefit for a computer please. ive totally forgot and have no notes with me
thanks in advance
pamela

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  • Rexie
    Rexie Registered Posts: 10 New contributor 🐸
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    Asset on Loan

    Asset on loan is 20% ov value
  • ambitious
    ambitious Banned User Posts: 93 Regular contributor ⭐
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    Thats 20% x (Market Value) for each year the computer has been kept. And if the asset - in this case the computer - is given to an employee then use this formula to work out the assessable amount to add to their income:

    (Original Market Value of asset when first provided) - [20% X (Market Value) x Number of years asset is kept up to the purchase date] - (Amount paid by employee if bought)

    Ignore the Market Value at the time of the purchase as this is not required.

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