# PTC Dec 08

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Registered Posts: 1,774 Beyond epic contributor 🧙‍♂️
Task 1.1 (Yes thats right the very first question I am stuck)

When calculating the Car Benefit I used the List Price of £27,995 and multiplied it by 35% but in the answer it says Cost – restricted to the £25,000 paid for by the company. I thought it was the list price you always used?

• Registered Posts: 1,800 Beyond epic contributor 🧙‍♂️
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jewels.p wrote: »
Task 1.1 (Yes thats right the very first question I am stuck)

When calculating the Car Benefit I used the List Price of £27,995 and multiplied it by 35% but in the answer it says Cost – restricted to the £25,000 paid for by the company. I thought it was the list price you always used?

the company said he can choose a car upto £25,000. so the company will only do the benefits upto that amount (i think)

i always look in the assesors report too as that sometimes explains the pitfalls lol

Tracy
• Registered Posts: 528 Epic contributor 🐘
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this is a bit mean because it is list price you use, (that is the value of the benefit to the employee) did the company get a discount on the car, even in those circumstances I thought you would use 'list price' - bit off to me
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/WorkingAndPayingTax/DG_10021716
• Registered Posts: 528 Epic contributor 🐘
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Jewels, the guy made a contribution to the car (capital) so that is taken off the list price before you calculate the benefit.
• Registered Posts: 711 Epic contributor 🐘
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The question states that 'the difference in price was met by Mahmood'. If a capital contribuition is made, as it has been in this case, it is always deducted from the list price.
• Registered Posts: 145 Dedicated contributor 🦉
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Hi,

I've just been doing that one!

Don't forget there is a bit that says the difference in price was met by Mahmood.
If an employee makes a CAPITAL contribution then it is deducted from the list price.

If an employee makes a REVENUE contribution (eg each year towards running costs) then it is deducted from the assessable amount.

Hope that helps - it seems to be one of the only things that has sunk into my head - lol!

Ampsie
:-)
• Registered Posts: 1,774 Beyond epic contributor 🧙‍♂️
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Thanks guys. So much ifs and buts to decide what you need to do with PTC.