personal tax
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i need help with benefits in kind, here's the question<BR><BR>you receive the following benfit from your employer:<BR><BR>the use of keep fit equipment owned by the company, (valued at £1700 when you first acquired it on 1st March 05)<BR><BR>Tax year 2004-2005<BR><BR>please help
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personal tax
I think it goes like this....<BR><BR>The use of an asset rate is 20% of the market value, thus £1,700 x 20% = £340. <BR><BR>The fact that the asset has only been available since 31st March 05 suggests that this should be apportioned, therefore 36/365 x £340. The benefit in kind should be £33.53.<BR><BR>Itâ??s been a while since having to do these types of calculation so you may want to get a second opinion......<BR><BR>Regards<BR>0 -
personal tax
hello, thanks for the explantion but how did you get 36, i just would like to know for future questions<BR><BR>many thanks once again0 -
personal tax
Hi<BR><BR>I agree with thunderbirdsarego the calculation is correct.<BR><BR> 36 is the number of days the asset has been owned / available for use within the tax year. <BR>As it was only available for 36 days (01/03/05 - 05/04/05) the amount of benefit in kind is apportioned to cover this period only<BR><BR>Hope this helps<BR><BR>Michelle0 -
personal tax
so is 05/04/05 is this the end of the tax year?<BR><BR>many thanks for explanation<BR>0 -
personal tax
Sebula<BR><BR>Apologies for not getting back to you with an explanation, and thanks to Krispi for doing for me. Itâ??s just that I only log on during my lunch hour â?? hopefully you understood Krispiâ??s explanation.<BR><BR>Regards<BR><BR>Barry<BR>0 -
personal tax
Hi Sebula<BR><BR>Yes 05/04/05 is the end of the tax year it always runs from 06th April to the 05th April the following year. <BR>So if your are looking at tax year 04/05 it would start at 06/04/04 and end at 05/04/05.<BR><BR>Hope this helps<BR>Michelle0