Hannah is a Tax Senior working for the prestigious tax advisers $‘$Arden Taxation UK Ltd$’.$ Hannah is going to have a meeting with one of its clients, Jonathan Matteo. She knows that he is now working as an associate lecturer at Arden University, and he is going to ask Hannah$’$s tax advice.Jonathan sent in advance the following documents for Hannah to analyse before the meeting:$•$ The letter from Arden University with the terms and conditions of the contract$•$ The bank statement covering $1$ April $2022$ to $30$ March $2023$ Letter from Jonathan Matteo from Arden University $15$ February $2022$ Dear Jonathan, We have great pleasure in offering you the full$-$time post as Associate Lecturer at the School of Finance at Arden University commencing on $1$ May $2022.$ Your remuneration package from your date of commencement will include a salary of $\pounds 42,000$ per annum, the full use of a diesel Ford car which the company purchased in January $2022$ for $\pounds 16,000($CO$2$ emissions $128$g$/$km$,$ list price $\pounds 17,500).$ The company will pay also pay for $90\%$ of all fuel costs, a mobile phone $($value capped at $\pounds 150)$ and computer for your home use $($value capped at $\pounds 1,700).$ You will also be part of the company$’$s bonus scheme through which a bonus which will be paid in February. Finally, I understand from our HR department that you would like to contribute $6\%$ of your basic salary to our HMRC registered company pension scheme, this will be matched by a $6\%$ contribution by Arden University. We look forward to welcoming you to our team. Yours sincerely Mr Enrico Director of the SchoolBank Statement EXHIBIT B $–$ Bank Statement BANKIN bank.co$.$ukMr$.$ Jonathan Current Account Account Number $1234543$ Available Balance $\pounds 55,475\mathrm{.}00$ Sort Code $98-76-54$ Account Balance $\pounds 55,651\mathrm{.}00$ Overdraft limit $\pounds 500\mathrm{.}00$ Question $1$$1\mathrm{.}1-$ Jonathan took the company car offered by Arden University and contributed $\pounds 550$ towards the cost of fuel. In addition, Jonathan took full advantage of the other benefits offered and chose a mobile phone $($retail price of $\pounds 145)$ and laptop $($retail price $\pounds 1,500).$ Required: What is the total benefit in kind which will appear on Jonathan$’$s P$11$D for $2022/23$ in respect of these benefits? $(6$ marks$)$ $1\mathrm{.}2-$ Taking into consideration pensions and benefits, what is Jonathan$’$s total employment income for the $2022/23$ tax year $($assuming his bonus has not had PAYE deducted$)?(4$ marks$)$ Page $19$ of $26[3038]$ Arden University $\copyright$ reserves all rights of copyright and all other intellectual property rights in the learning materials and this publication. No part of any of the learning materials or this publication may be reproduced, shared $($including in private social media groups$),$ stored in a retrieval system or transmitted in any form or means, including without limitation electronic, mechanical, photocopying, recording or otherwise, without the prior written consent of Arden University. To find out more about the use and distribution of programme materials please see the Arden Student Terms and Conditions.$1\mathrm{.}3-$ Jonathan would like you to explain in full any tax advantage he would get from increasing his pension contributions and if there is a cap on the amount he can contribute? $(4$ marks$)$$1\mathrm{.}4-$ In $2022$ Jonathan made a few bulk EBay purchases of vinyl records which he sold in December for a small profit. He is worried because at a party one of his friends said he thought Jonathan would have to pay tax on any profit he makes. Required: Making reference to two $‘$Badges of Trade$’,$ explain the comment made by Jonathan's friend and challenge why it may not be correct. $(4$ marks$)$$1\mathrm{.}5-$ Jonathan would like to know if he is deemed to be carrying on a trade with his vinyl record sales, what will happen if the trade makes a loss in $2022/23,$ how will the loss be treated for tax purposes and will how will he get relief for any losses? $(4$ marks$)$$1\mathrm{.}6$ Jonathan owns $10$ shares in B Sky B which have paid two dividends during the year. Jonathan would like you to briefly explain how dividends are taxed in the UK and why they are treated differently from other forms of income. $(4$ marks$)1\mathrm{.}7-$ Using Jonathan$’$s donation to Comic Relief as an example, explain to Jonathan how he will receive tax relief for this gift aid donation and the benefit to the charity Comic Relief. $(4$ marks$)$ $1\mathrm{.}8-$ Jonathan tells you he has paid $\pounds 8,700$ tax through PAYE and asks you to calculate any additional income tax he must pay for $2022/23.$ Required: Using all the information included in the documents provided, and any points already discussed, calculate the additional income tax payable for $2022/23.(8$ marks$)($Your calculations should be on the basis that you determined that Jonathan was not carrying on trade with his vinyl EBay sales.$)$ $1\mathrm{.}9-$ What is the deadline for Jonathan to electronically file his personal tax return and before what date must he pay any additional tax due? $(2$ marks$)$table$[[\frac{01}{04}/2022,*$ BALANCE PER PREVIOUS STATEMENT $***,$

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01/04/2022 ** BALANCE PER PREVIOUS STATEMENT ** £15,245.00+ 31/05/2022 Arden University £3,500.00+ 30/06/2022 Arden University £3,500.00+ 30/06/2022 ** INTEREST ** £63.50+ 25/07/2022 B SKY B SHARES: INTERIM DIVIDEND £228.00+ 31/07/2022 Arden University £3,500.00+ 23/08/2022 EBAY RECORD PURCHASES £211.67- 31/08/2022 Arden University £3,500.00+ 30/09/2022 Arden University £3,500.00+ 30/09/2022 INTEREST ** £127.00+ 12/10/2022 EBAY RECORD PURCHASES £105.83- 31/10/2022 Arden University £3,500.00+ 21/11/2022 EBAY RECORD PURCHASES £952.50- 30/11/2022 Arden University £3,500.00+ 15/12/2022 BANK DEPOSIT: RECORD SALES £1,350.00+ 31/12/2022 Arden University £3,500.00+ 31/12/2022 ** INTEREST £190.50+ 25/01/2023 B SKY B SHARES: FINAL DIVIDEND £456.00+ 31/01/2023 Arden University £3,500.00+ 28/02/2023 Arden University £3,500.00+ 28/02/2023 Arden University Ltd ANNUAL BONUS £3,754.00+ 17/03/2023 COMIC RELIEF CHARITY DONATION £100.00- 31/03/2023 Arden University Ltd £3,500.00+ 31/03/2023 CHEQUE 124698: Arden University car fuel £550.00- 31/03/2023 ** INTEREST ** £254.00+ ** BALANCE PER CURRENT STATEMENT** £58,248.00+ 01/04/2022 ** BALANCE PER PREVIOUS STATEMENT ** £15,245.00+ 31/05/2022 Arden University £3,500.00+ 30/06/2022 Arden University £3,500.00+ 30/06/2022 ** INTEREST ** £63.50+ 25/07/2022 B SKY B SHARES: INTERIM DIVIDEND £228.00+ 31/07/2022 Arden University £3,500.00+ 23/08/2022 EBAY RECORD PURCHASES £211.67- 31/08/2022 Arden University £3,500.00+ 30/09/2022 Arden University £3,500.00+ 30/09/2022 INTEREST ** £127.00+ 12/10/2022 EBAY RECORD PURCHASES £105.83- 31/10/2022 Arden University £3,500.00+ 21/11/2022 EBAY RECORD PURCHASES £952.50- 30/11/2022 Arden University £3,500.00+ 15/12/2022 BANK DEPOSIT: RECORD SALES £1,350.00+ 31/12/2022 Arden University £3,500.00+ 31/12/2022 ** INTEREST £190.50+ 25/01/2023 B SKY B SHARES: FINAL DIVIDEND £456.00+ 31/01/2023 Arden University £3,500.00+ 28/02/2023 Arden University £3,500.00+ 28/02/2023 Arden University Ltd ANNUAL BONUS £3,754.00+ 17/03/2023 COMIC RELIEF CHARITY DONATION £100.00- 31/03/2023 Arden University Ltd £3,500.00+ 31/03/2023 CHEQUE 124698: Arden University car fuel £550.00- 31/03/2023 ** INTEREST ** £254.00+ ** BALANCE PER CURRENT STATEMENT** £58,248.00+

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Here are the answers to Jonathans questions 11 Benefit in kind on company car and other benefits Company car The taxable benefit is calculated as 20 o... View the full answer