Question - Company cars and assessable benefit

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dan_91x
dan_91x Registered Posts: 8
in Personal Tax
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?

Comments

  • fournaanjez
    fournaanjez Registered Posts: 32
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    Is that the whole question or is there any more information?
  • MarieNoelle
    MarieNoelle Registered, Moderator Posts: 1,368
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    It looks like the car has only been provided for half the year - is it in the question?
  • dan_91x
    dan_91x Registered Posts: 8
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    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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