Read each question carefully and select the answer you think is correct (do your working to determine this as necessary). Once you have made your selection check if this is correct.
Katherine (aged 35) owns a number of rental properties and has a net taxable property income of £18,480 for the year. She also has building society interest of £3,360. She does not have any deductible reliefs and is entitled to the personal allowance only. Her tax payable will be:
£1,654.00
£1,182.00
£4,368.00
£4,168.00
Terrance O’Grady owns a flat which he rents to tenants. Under the rental agreement, rent is payable quarterly in advance on 1 January, 1 April, 1 July and 1 October. The annual rent was set at £5,000 until 1 January 2022 when it was increased to £5,400. During the year, Terrance received from his tenant £1,250 on 2 July 2022, the same amount on 30 September 2021 and £1,350 on 3 January 2022. The payment due on 1 April 2022 wasn’t received by Terrance until 9 April 2022. The amount assessable for property income is £5,100 for tax year.
True
False
Susan Jeffries is a director of a small trading company and receives an annual salary of £30,000. She also receives annual bonuses based on the company’s profits for the year which were as follows: £6,000 for the company’s profits for the year ended 31/12/19, approved on 19/3/20, paid on 1/4/20 £12,000 for the company’s profits for the year ended 31/12/20, approved 20/3/21, paid on 25/3/21 £10,000 for the company’s profits for the year ended 31/12/21, approved 20/3/22, paid on 25/3/22 The total emoluments assessable on Susan for 2021/22 are:
£40,000
£42,000
£52,000
£58,000
Brad Pott was provided (for the whole tax year 2021/22) with a 1,800 cc petrol engined (non-hybrid) car with CO2 emissions of 106g/km, which cost £28,000 new and is now three years old. During the tax year, Brad drove 20,000 miles, of which 15,000 miles was for business purposes. He pays a contribution of £1,000 per annum towards the use of the car and his employer pays for all fuel. What is the assessable benefit?
£12,676
£6,280
£13,676
£6,396
Alison Freely works for a small retailing company and incurred the following expenses during the year: (1) cost of travel in her own car directly from home to her client’s premises, instead of going to her normal office first (which is a considerable distance from the client’s premises) (2) travel and subsistence costs while working temporarily away from home and her normal place of work (3) entertaining expenses paid out of an allowance provided by her employer, and which is not allowed as a deduction to her employer. The expenses that will be ALLOWED as a deduction against employment income are:
1 and 2
1 and 3
1, 2 and 3
2 and 3
1 only
Jensen Benneton is provided with a 1,400 cc petrol engined van by his employer which cost £12,000 when first acquired in 2019 and has CO2 emissions of 210 g/km. Jenson is entitled to use the van for private purposes and his employer provides the petrol for it. The amount assessable on Jenson in this tax year is:
£nil
£4,156
£4,169
£3,500
£13,542
Sharon Rock is a sales executive with a large retail company. She uses her own 1,400cc petrol engined car for business travel. Her employer pays her 25p per mile for the 5,000 miles that she travelled on company business during the year. How much (if any) can she claim as relief in her tax return?
£1,250
£1,000
£500
£nil
Peter works for Petros Ltd and is provided with a house which Petros Ltd rents for an annual rental of £2,500. Peter pays Petros Ltd £1,200 in rent for the use of the house which has a rateable value of £1,000. What benefit, if any, will be assessable on Peter for the year?
£1,000
£nil
£1,300
£1,200
Barbara Hewitt worked for a number of years as the financial controller for a medium sized manufacturing company. On 8 October 2021, her employment was terminated and she received the following payments as compensation for loss of office: £8,000 being statutory redundancy pay. £42,000 being an ex gratia lump sum from her employer £10,000 being the market value of her company car which she was allowed to keep. Given that her contract of employment did not provide for loss of office, what amount, if any, will be assessable in respect of these payments and benefits?
£18,000
£52,000
£12,000
£30,000
£42,000
Cecil Evans (a P11D employee) was provided with a new, petrol engined, non-hybrid, car costing £40,000 and with CO2 emissions of 102g/km by his employer on 1 February 2020. He paid his employer £7,000 towards the purchase cost of the car. The assessable benefit for the car in the current year is:
£10,000
£8,750
£8,250
Geoffrey Bannister is the director of his family company Biggles Ltd. On 6 April 2020, Biggles Ltd acquired a valuable statue for £6,000 and Geoffrey decided to keep this at his home. On 6 April 2021 Biggles Ltd sold the statue to Geoffrey for £3,000, at which time it was valued at £12,000. What sum will be assessed as a benefit on Geoffrey for the tax year?
£4,050
£9,000
£nil
£5,250
Which of the following elements of a redundancy package are always exempt from tax? 1. An ex-gratia payment 2. Pay in lieu of notice 3. Statutory redundancy payment
1 and 2
1 and 3
2 and 3
3 only
Nicola is made redundant and at the end of her 3 months' notice period, she has been offered £57,500, which includes £6,200 statutory redundancy pay. How much of this is taxable?