Salary: 25,000
Other benefits: 500
payments to registered occupational pension scheme: 2000.
Accommodation details:
Annual Value: 1500
cost to employer 4 years ago: 90,000
furn cost 4 years ago: 10,000
employer pays all bills: 1000
Accommodation is given by the employer but it is job related.
To compute the JRA benefit, we use 10% net earnings.
Net Earnings computations:
Salary: 25,000
other benefits: 500
Total: 30,000
10%=3000
is my net earnings figure correct for this scenario? do i have to include the 1000 for bills paid?
Ask the Tutor ACCA TX-UK
Job related Accommodation
May I firstly ask where you got this example from and whether you already have a suggested answer?
i am using kaplan ... its a worked example.. but the example working is for Non job related.
and the text says that for JRA, i just compute the net earnings - no answer given.
thats y i worked out and asked u
I presume firstly that the figure for other benefits should be 500 - I mention this as you use that number twice but in your net earnings computation you appear to use 5,000.
If the property is job related then there will be no assessable benefit in relation to the property itself - neither the annual value nor the expensive accommodation benefit will apply.
The other benefits -
Use of furniture (20% x 10,000) and running costs of 1,000 = total 3,000
will be restricted to a maximum 10% of net earnings
= (25,000 + 500 - 2,000) x 10% = 2,350
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