AAT Level 4 Personal tax Assessment 1 task 1.3
Sentinel
Registered Posts: 9 New contributor 🐸
in Personal Tax
Hi, im finding it difficult to understand how to work out the following questions -
"A television and cinema system costing Clartt Ltd £15,000 was bought for Ranjit's use on 1 September 2020"
"Margaret received a watch as her 25 year long service award. This was Margarets first long service award and the watch cost Clartt Ltd £1450"
Please can somebody get back to me on this ASAP.
Many thanks -
Sentinel
"A television and cinema system costing Clartt Ltd £15,000 was bought for Ranjit's use on 1 September 2020"
"Margaret received a watch as her 25 year long service award. This was Margarets first long service award and the watch cost Clartt Ltd £1450"
Please can somebody get back to me on this ASAP.
Many thanks -
Sentinel
0
Comments
-
"A television and cinema system costing Clartt Ltd £15,000 was bought for Ranjit's use on 1 September 2020"
You need to time apportion the use of the cinema system. It was only used for 7 months of the tax year. £15,000 x (7/12) = £8,750. Then £8,750 x 20% = £1,750 taxable benefit.
"Margaret received a watch as her 25 year long service award. This was Margarets first long service award and the watch cost Clartt Ltd £1450"
She can get £50 per year of service. 25 years x £50 = £1,250.
£1,450 - £1,250 = £200 taxable benefit.
1 -
Thank you so much! I was stuck on this question for so long.JSmith said:
"A television and cinema system costing Clartt Ltd £15,000 was bought for Ranjit's use on 1 September 2020"
You need to time apportion the use of the cinema system. It was only used for 7 months of the tax year. £15,000 x (7/12) = £8,750. Then £8,750 x 20% = £1,750 taxable benefit.
"Margaret received a watch as her 25 year long service award. This was Margarets first long service award and the watch cost Clartt Ltd £1450"
She can get £50 per year of service. 25 years x £50 = £1,250.
£1,450 - £1,250 = £200 taxable benefit.0
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