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Question - Company cars and assessable benefit

dan_91xdan_91x Registered Posts: 8
Hi I am self-studying for AAT Level 4 and my exam is soon in a couple of weeks. I would appreciate if someone can help me with this:

Employee is provided with a company car which cost the company £8000 but the list price is £17000. The car has CO2 emissions of 168 g/km, and has a diesel engine. The company pays for all running costs, except private fuel.

1) The cost of the car used in the benefit in kind in computation is: .....
2) The percentage used in the benefit in kind in computation is: .....%
2) The assessable benefit for the employee: .....

My answer:
1)17000 - correct
2) 33% - correct
3) 17000*0.33 = £5610 but my answer is wrong....the correct answer is £2805.

Can somebody explain why is that?


  • fournaanjezfournaanjez Registered Posts: 32
    Is that the whole question or is there any more information?
  • MarieNoelleMarieNoelle Trusted Regular Hampshire/Surrey borderModerator, MAAT, AAT Licensed Accountant Posts: 1,432
    It looks like the car has only been provided for half the year - is it in the question?
  • dan_91xdan_91x Registered Posts: 8
    Oh yes, the car was provided on the 6th October 2016. Now the figure of £2805 makes sense. I forgot that it will be time apportioned. Ok thanks :)
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