FA2020 Practice Assessment 1 task 1.3
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skandwm15
Registered Posts: 16 New contributor 🐸
in Personal Tax
A television and cinema system costing Clartt Ltd £15,000 was bought for Ranjit's use on 1 September 2020.
Calculate the taxable benefit in kind.
The answer is £1,750 - Could anyone help with how this amount is reached?
Calculate the taxable benefit in kind.
The answer is £1,750 - Could anyone help with how this amount is reached?
0
Comments
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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.0
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Thank you!!0
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