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From BPP Revision Kit (UK version) there is a question:
Judith works for S Ltd for an annual salary of $18,000. On 30 September 2016, she received a bonus of $4,000 in respect of S Ltd’s trading results for the year ended 31 March 2016. She expected to receive a bonus of $4,800 on 30 September 2017 in respect of S Ltd’s results for the year ended 31 March 2017. Judith also received $500 form a customer on 1 December 2016 as a gratuity for good service.
What is Judith ‘s employment income for the tax year 2016/2017?I wonder whether the income of $500 was treated as income for tax year 2016/2017 or 2017/2018. If it treated as income for 2016/2017, the total income will be $22,500 for year 2016/2017. In reversion, it will be treated as income for 2017/2018, the total income will be $22,000 for the year 2016/2017.
Please help me explain about this!
Thank you!
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