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Amy is hotel manager and is provided with accommodation. her salary is 25000. she has other employment benefits of 500 and makes payment into her employer’s registered occupational pension scheme of 2000 p.a
The accommodation has an annual value of 1500 and cost her employer 90000 four years ago. the accommodation contains furniture which cost the employer 10000 four years ago. (when employee first occupied the accommodation.) the employer pays all of the household bills totaling 1000. calculate the taxable benefit for 14/15 assuming accommodation is not job related.
1.for furniture why should we calculate like 20%*10000 instead of writing whole 10,000?..
2.while calculating taxable benefits, don’t we need to add employment benefits of 500? why?so, if it was job related how do we calculate taxable benefit?
this question is from kaplan book page 152
1)Just because this is the rule that applies to assets loaned to employee for their use if they are P11D employees.
2)It depends on the nature of the benefits.If they are not wholly,exclusively and necessarily needed in course of employment they are assessed as part of taxable income unless they are specifically excluded by statue from being assessed (for example,provision of a car space at or near place of employment).
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