TAX - Ch-5 & Ch-6

John is employed by Zebra plc. He was provided with a computer for private use on 6 November 2022.

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 2024 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 2023/24?

• £2,880

• £3,300

• £1,720

• £1,833

Judith works for Sabre Ltd for an annual salary of £18,000. On 30 September 2023, she received a bonus of £4,000 in respect of Sabre Ltd's trading results for the year ended 31 March 2023. She expects to receive a bonus of £4,800 on 30 September 2024 in respect of Sabre Ltd's results for the year ended 31 March 2024. Judith also received £500 from a customer on 1 December 2023 as a gratuity for good service.

What is Judith's employment income for the tax year 2023/24?

• £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 2023/24.

Throughout the tax year 2023/24, 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 2023 at a cost of £10,000.

What is the amount assessable on Sergey in the tax year 2023/24 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 2023/24. The car has C02 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 2023/24?

• £4,500

• £5,220

• £5,000

• £5,800

Katya is provided with a hybrid-electric company car from 1 July 2023 to 31 December 2023. The car has a list price of £26,000 with C02 emissions of 35g/km and an electric range of 39 miles.

What is Katya's car benefit for 2023/24?

• 1560

• 1580

• 1600

• 1650

Johan is provided with an electric company car throughout the tax year 2023/24. The car has a list price of £30,000 with zero CO2 emissions. Johan made a capital contribution of £5,550.

What is Johan's car benefit for 2023/24?

• 500

• 600

• 400

• 700

Judi is an accountant. She often travels to meetings at the firm's offices in Scotland, returning to her office in Leeds after the meetings.

Which of the following travels by Judi’s is eligible for tax relief?

• Travel Cost between Home and office in Leeds

• Travel Cost to firm’s offices in Scotland will be allowed as relief

• No tax relief will be allowed for any travel cost

• Relief will be allowed for both Travel to offices in Scotland and office in Leeds

Fred owns a car and travels 11,000 business miles in the car in a tax year. He is paid 35p per mile by his employer.

What is the impact on Fred's assessable employment income for the tax year?

• Deduction of £1,100

• Deduction of £900

• Increase of £1,100

• Increase of £900

Jacob works part time for Zylon Ltd at a salary of £8,000 a year. He is not a director of Zylon Ltd. On 30 November 2023, Jacob received a bonus of £1,800 in respect of Zylon Ltd's trading results for the year ended 31 October 2023. He expects to receive a bonus of £2,400 in November 2024 in respect of Zylon Ltd's results for the year ended 31 October 2024.

What is Jacob's employment income for the tax year 2023/24?

• 9800

• 9900

• 9500

• 9600