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How do we calculate the bonus part in this question?
Bayle will be paid gross director’s remuneration of £42,000 by Acquit & Appeal Ltd during the tax year 2010–11.
In addition to her director’s remuneration, Bayle received two bonus payments of £6,000 from Acquit & Appeal Ltd during June 2010, both of which were in respect of the year ended 31 December 2009. Bayle became entitled to the first bonus payment of £6,000 on 10 March 2010, and to the second bonus payment of £6,000 on 20 April 2010.
Which bonus amts should we include ?
Hi Kamila, firstly from the information you have quoted you are using the past exams from the ACCA website which have not been updated for the Finance Act 2013! You should only be using a FA 2013 exam kit from one of the official providers, But it’s a little late for that now I suppose!!
In respect of your question a bonus is assessed on the earlier of the date actually received or the date when the taxpayer became entitled to the payment (see OT course notes Employment Income chapter).
Hence the first £6,000 would be assessed in 09/10 and the second in 10/11
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