Dear tutor , i have another question ,
Note 2 – Car and fuel benefits
Throughout the tax year 2013–14, Prog plc provided Richard with a petrol-powered motor car which has a list price of £17,900. The motor car cost Prog plc £17,200, and it has a CO2 emission rate of 144 grams per kilometre. During the tax year 2013–14, Richard made contributions of £1,200 to Prog plc for the use of the motor car. During the period 1 July 2013 to 5 April 2014, Prog plc also provided Richard with fuel for private journeys.
The total cost of fuel during the period 1 July 2013 to 5 April 2014 was £4,200, of which 45% was for private journeys. Richard did not make any contributions towards the cost of the fuel.
the answer is that Fuel benefit (21,100 x 20% x 9/12) 3,165 , i don't know how to calculate 21,100, please help me.
many thanks
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past paper JUNE 2014 question 1
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I think this was the base figure for calculating fuel benefit for the tax year 2013-14.
For the tax year 2014-15 this figure is 21.700 and is given in the rate and allowances section (see Car fuel benefit)
thank you boma77, would you tell me if any fuel benefit will be dealt like this by using base figure ? would you please tell me further?
many thanks
Fuel benefit is calculated using the percentage used to calculate the car benefit (in the example above 20%) x base figure for calculating fuel benefit (21.700).
but the answer is 21,100 , it is not 21700? sorry i am so stupid. (21,100 x 20% x 9/12)
21.100 was used for the tax year 2013/14. The question above relates to the tax year 2013-14.
For the exam March 2016 the relevant base figure for calculating the fuel benefit is 21.700. This is for the tax year 2014-15.
thanks a lot , i understand now.
As noted by boma77 you are using 13/14 material - you CANNOT do this!! You must use the FA 2014 material as per the OT course notes and lectures and simply supplement this with an exam kit from an approved provider again for FA 2014!
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