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Dear Tutor, i have another question, shown as follows:
John is employed by Z plc at a salary of £ 35,000 a year. He was provided with a computer for private use on 6 November 2013. The market value of the computer when first provided to an employee for private use was £ 3600 and had a market value of £2,000 when privided to John for private use.Z plc gave the computer to John on 5 ASpril 2015 when it had a market value of £ 1,000.
what are the total taxable benefits for John in respect of the computer for the tax year 2014/15?
the answer is 3300. but what i did is that 3600-(3600×20% +3600×20%x5/12)=2580. would you please help me?
many thanksAccording to me the solution should be:
market value when first provided = 3600
less:benefit assessed
(3600*20%*5/12) = (300)
= 3300 answerthanks samiksha856, but how about between 6 November 2013 and 31 October 2013?
please help me a further !
many thanksYou state that the question asks for the “TOTAL taxable benefits in 2014/15. This is made up of 2 things, firstly the annual taxable benefit for 2014/15 for the use of the asset, £720 (3,600 x 20%) as the asset was used through till 5 April 2015 before being transferred to the employee and secondly the taxable benefit on the transfer to the employee which jingdong you have correctly calculated as £2,580.
The answer is therefore 720 + 2,580 = 3,300
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