TX -Ch-5 ( Employment income )

Sharon uses her own car for business travel. During the tax year 2022-23, she drove 15,600 miles in the performance of her duties, without any reimbursement from her employer.

What approved mileage allowance can Sharon claim?

• 1. £0

• 1. £3,900

• 1. £5,900

• 1. £7,020

Natalia is a director of Norxen Ltd, which has an accounting reference date of 31 March 2023.

Which TWO of the following costs will be assessable on Natalia for the tax year 2022-23?

• 1. A bonus in respect of the year ended 31 March 2022 which was paid on 30 April 2022. The bonus was voted to Natalia on 1 March 2021.

• 1. A bonus in respect of the year ended 31 March 2023 which was paid on 30 April 2023. The bonus was voted to Natalia on 1 April 2023.

• 1. Director’s fees paid on 10 April 2022 in respect of the year ended 31 March 2022.  The fees were voted to Natalia on 1 March 2022.

• 1. Director’s fees paid on 30 April 2023 in respect of the year ended 31 March 2023.  The fees were voted to Natalia on 30 March 2023.

John is employed by Zebra plc. He was provided with a computer for private use on 6 November 2021.

The market value of the computer when first provided to an employee for private use was £3,600 and the computer had a market value of £2,000 when first provided to John for private use. Zebra plc gave the computer to John on 5 April 2023 when it had a market value of £1,000.

What are the total taxable benefits for John in respect of the computer for the tax year 2022/23?

• £2,880

• £3,300

• £1,720

• £1,833

In the tax year 2022/23 Susie receives employment income of £170,000. She made a gross gift aid donation of £10,000 in January 2023.

What is Susie's income tax liability for the tax year 2022/23

• £59,460

• £61,460

• £58,960

• £53,432

Petunia is a single parent with a two-year old son. She receives child benefit of £1,134 in the tax year 2022/23. Petunia has net income of £57,000 in 2022/23 and she made gross personal pension contributions of £2,000 during 2022/23.

What is Petunia's child benefit income tax charge for the tax year 2022/23?

• £1,134

• £454

• £567

• £794

Judith works for Sabre Ltd for an annual salary of £18,000. On 30 September 2022, she received a bonus of £4,000 in respect of Sabre Ltd's trading results for the year ended 31 March 2022. She expects to receive a bonus of £4,800 on 30 September 2023 in respect of Sabre Ltd's results for the year ended 31 March 2023. Judith also received £500 from a customer on 1 December 2022 as a gratuity for good service.

What is Judith's employment income for the tax year 2022/23?

• £22,000

• £22,800

• £22,500

• £23,300

Which TWO of the following are qualifying travel expenses?

• Travel from employer's office to visit a client

• Travel from home to a workplace to which an employee has been seconded for 36 months

• Travel from home to a permanent place of work

• Travel from home to visit a trade fair relevant to the employer's business 100 miles away from permanent place of work

Since 2018, Sergey has lived in job-related accommodation provided by his employer for Sergey's personal security. He has an annual gross salary of £60,000 for the tax year 2022/23.

Throughout the tax year 2022/23, Sergey's employer paid for heating, cleaning and lighting the accommodation at a cost of £7,000. His employer also provided Sergey with furniture on 6 April 2022 at a cost of £10,000.

What is the amount assessable on Sergey in the tax year 2022/23 in relation to the furniture, heating, cleaning and lighting costs?

• £6,000

• £9,000

• £7,000

• £8,000

Trevor is employed by Cress plc. He is provided with a car available for private use for the tax year 2022/23. The car has CO2 emissions of 102 g/km and a list price of £20,000 although Cress plc actually paid £18,000 for the car as the result of a dealer discount.

The car has a diesel engine which does not meet the RDE2 standard. No private fuel is provided.

What is Trevor's taxable car benefit for the tax year 2022/23?

• £4,500

• £5,220

• £5,000

• £5,800

Paul invested £6,000 in a stocks and shares Individual Savings Account (ISA) in January 2023.

How much can Paul invest in a cash ISA for the tax year 2022-23?

• 1. £0

• 1. £6,000

• 1. £20,000

• 1. £14,000