Personal Tax Question HELP!!

B1982B1982 Just JoinedPosts: 3Registered
Hi, I will be sitting my personal tax exam on Wednesday and i'm stuck on the following question (c)... It's from the CBA Finance act 2010 exam on the aat website.

An employee has a salary of £28,500. He was given the use of a house in December 2099, that cost the employer £198,000. The annual value of the house is £5,700. The house contained furniture that cost the employer £3,000. The employer also paid for all ancillery services, which cost £3,200 for 2010/11

a. The assesable benefit in kind for the use of the house for 2010/11 is ... £10,620 (Got that right)

b. The assesable benefit in kind for the use of the furniture and the ancillary services for 2010 is... £3,800 (Got that right aswell.

Now here is where i get stuck...
c. If the house was treated as a job-related accomodation, the assessable benefit in kind would be?????
(On the aat answer sheet it states £2,850, but i can't work out how to get to that figure)

Any help on how to answer will be greatly appreciated. Thanks!

Comments

  • NiaNia Feels At Home Posts: 72Registered
    as its job related accommodation, ancillary benefits are restricted to 10% of other employment income ie 10% of £28500. HTH
  • B1982B1982 Just Joined Posts: 3Registered
    Thanks very much Nia!! :o)
  • PritiPriti Settling In Nicely Posts: 15Registered
    Hi

    Im struggling with this question aswel, i cant seem to get the answer for question A and B,

    Would you please be able to explain how you came to those answers?

    Any help would be appreciated

    Thanks
    Priti
  • salihsalih Feels At Home Posts: 81Registered
    how do you get 3800 again?
  • Diddy MauDiddy Mau Well-Known Posts: 238Registered
    Hi Salih
    been a while since I done this but:
    The house contained furniture that cost the employer £3,000. The employer also paid for all ancillery services, which cost £3,200 for 2010/11

    3000x20%=600
    3,200+600=3,800

    hope this helps
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