(a) Amrita has been employed by Pax Ltd for many years. She received the following remuneration...

 

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(a) Amrita has been employed by Pax Ltd for many years. She received the following remuneration package in 2020/21: A salary of £18,000 (gross). A bouquet of flowers on her birthday costing £35. Provision of a flat owned by Pax Ltd, with an annual value of £21,613. The flat cost the company £220,000 in 2017. The official rate of interest on 6 April 2020 was 2.25%. Private use of a virtual reality headset belonging to Pax Ltd from 6 July 2020. The headset has a market value of £1,500. Amrita paid £120 during 2020/21 towards the use of the headset. Requirement Calculate the employment income for Amrita for 2020/21. Show clearly all relevant workings and note any exempt items. (4 marks) (b) During 2020/21, Amrita also received £15,000 of dividends and £1,600 of bank interest. On 10 June 2020 she won £4,000 on her premium bonds. Requirement Using the all the information from parts (a) and (b) of the question, calculate Amrita's income tax liability for 2020/21, clearly showing all your workings. (a) Amrita has been employed by Pax Ltd for many years. She received the following remuneration package in 2020/21: A salary of £18,000 (gross). A bouquet of flowers on her birthday costing £35. Provision of a flat owned by Pax Ltd, with an annual value of £21,613. The flat cost the company £220,000 in 2017. The official rate of interest on 6 April 2020 was 2.25%. Private use of a virtual reality headset belonging to Pax Ltd from 6 July 2020. The headset has a market value of £1,500. Amrita paid £120 during 2020/21 towards the use of the headset. Requirement Calculate the employment income for Amrita for 2020/21. Show clearly all relevant workings and note any exempt items. (4 marks) (b) During 2020/21, Amrita also received £15,000 of dividends and £1,600 of bank interest. On 10 June 2020 she won £4,000 on her premium bonds. Requirement Using the all the information from parts (a) and (b) of the question, calculate Amrita's income tax liability for 2020/21, clearly showing all your workings.

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