Edward was born on 29 October 1971.

2) Edward is employed by Stately Ltd as a marketing director. During the tax year 2021–22, he was paid gross director’s remuneration of £179,000.

3) On 1 December 2021, Stately Ltd provided Edward with an interest-free loan of £87,000, which he used to purchase a holiday cottage.

4) Stately Ltd has provided Edward with a home entertainment system for his personal use since 6 April 2018. The home entertainment system had been purchased by Stately Ltd on 6 April 2018 for £5,200. The company gave the home entertainment system to Edward on 6 April 2021 for no charge, although its market value at that time was £2,200.

5) During the tax year, Edward contributed 4% of his gross director’s remuneration of £179,000 into Stately Ltd’s HM Revenue and Customs’ registered occupational pension scheme. The company contributed a further 6% on his behalf.

6) During the tax year, Edward donated £200 (gross) per month to charity under the payroll deduction scheme.

7) During the tax year, Edward used his private motor car for business purposes. He drove 12,000 miles in the performance of his duties for Stately Ltd, for which the company paid an allowance of 35 pence per mile.

8) On 1 January 2014, Edward paid a professional subscription of £240 to the Guild of Marketing, an HM Revenue and Customs’ approved professional body.

9) For the tax year, Stately Ltd deducted a total of £62,600 in PAYE from Edward’s earnings.

Required:

Calculate the taxable income and income tax liability for him.

Answer rating: 100% (QA)

Taxable Income Gross Directors Remuneration 179000 Less Pension Contributions 179000 x 10 ... View the full answer