PTC Dec 08

jewels.p

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?

taskey

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

reddwarf

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

reddwarf

Jewels, the guy made a contribution to the car (capital) so that is taken off the list price before you calculate the benefit.

Esme

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.

Ampsie

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
:-)

jewels.p

Thanks guys. So much ifs and buts to decide what you need to do with PTC.