PTC dec 2009

michaelar25
michaelar25 Registered Posts: 12 Regular contributor ⭐ ? ⭐
Can anyone help? I am seriously stressed out! Task 1.1 does anyone know where the 75,000 comes from on the expensive cost that you deduct from the 125,000?

Thanks x

Comments

  • reader
    reader MAAT, AAT Licensed Accountant Posts: 1,037
    Hi Michaelar

    The part of the question you are concerned about relates to accommodation benefit.

    If a company buys accommodation for their employee to live in and that accommodation is not work related the employee has to pay a benefit; the annual value.

    If the accommodation costs more than £75,000 the employee has to pay an additional benefit; the expensive accommodation charge.

    So if the property costs £125,000, the expensive accommodation calculation is as follows:

    Expensive accommodation charge = (Cost - 75,000) x HMRC official rate
    Expensive accommodation charge = (125,000 - 75,000) X 4.75%
    Expensive accommodation charge = £2,375

    Don't forget that in old past papers the HMRC official rate will be different as it changes from time to time.
  • michaelar25
    michaelar25 Registered Posts: 12 Regular contributor ⭐ ? ⭐
    thank you i remember that now from tuition completely slipped my mind
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