Ibtesam is provided with accommodation by his employer throughout 2021-21. The employer had bought the accommodation at a cost of £175,000 in July 2021. The annual value of the accommodation is £9,000. During 2021-22, Ibtesam employer also paid the following expenses related to the accommodation: 

Electricity bill £1,500 Gas £1,200 Decorating £6,000 Additionally, the employer paid £20,000 to furnish the house during 2021-22.

Sarah started her self-employment on 1 November 2020, she prepared the first period of accounts to 31 December 2021. 

 Required

What tax year will be her first tax year?

What is the taxable benefit on provision of the furniture?

Answer rating: 100% (QA)

The first tax year of Sarahs selfemployment will be the 202122 tax year The ta... View the full answer