Personal tax help again

Priti

Hi

I seem to be struggling with personal tax, i sat my exam last june and failed, ive found the 2 recent papers different to the old papers online, i cant seem to get my head around the 2011 paper.

Could any please help me with the below questions

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

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


I cant get the answers.

Any help would be great.

Thanks
Priti

ann09

hi priti

a. The assesable benefit in kind for the use of the house for 2010/11 is ... £10,620 annual value 5700+ 4920 (198000-75000) x 4% is expensive accomodation charge

b. The assesable benefit in kind for the use of the furniture and the ancillary services for 2010 is... £3,800(ancillery services £3,200 + 600 which is 20% of 3000furniture cost)

hope this helps you

Priti

Hi Ann

Makes sense, thanks for your help, much appreciated