Employment income

Question 1

How to treat the following:

He is provided with a fully expensed petrol company car which has CO, emissions of 102g/km, was
first registered in 2018 and a list price of £68,200. He uses the car 20% for business purposes and
makes no reimbursement for private petrol. Inferno Ltd paid for insurance and repairs to the car,
which totaled £4,600 during 2021/22.

Answer 1

Car is benefit and that should be calculated as:

(100-75) =25/5 = 5% +20% = 25% * List price

Fuel = 24600 * 25% (CO2 emiision)

Question 2

How to treat the following:

“buy to let property income received 35000. The mortgage interest paid on the buy to let property is 5600 per annum and the letting agents annual fee is 2750 paid in January each year”.

Answer 2

35000 - 2750.

The mortgage interest is not a deductible expense. its a tax reducer after the tax liability is calculated.

Question 3

Provision of a mobile telephone for both business and private use. The line rental from 6 April to 31 October 2021 was £175. Peter used the mobile 50% for private use with private calls
costing a total of £68 in 2021/22.

Answer 3

One mobile telephone (inc smartphone) is an exempt benefit to an employee even if used for private use

Question 4

X Ltd operate a “Give as you earn” scheme which is an approved payroll scheme. Rob donated £50 per month to charity via the scheme. How do you treat this?

Answer 4

Reduce taxable income by 12 *50£ if you are calculating for the whole tax year