Question 2 John Hanson is a senior executive with Buxton Plc. His annual salary for the...

 

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Question 2 John Hanson is a senior executive with Buxton Plc. His annual salary for the tax year 2020/21 is £110,000. In addition to his salary, Buxton Plc provided the following benefits to John: 1) A Nissan Juke 1,600 CC motor car from 1 July 2020. The list price of the car is £14,000. It cost £11,000 to Buxton Plc. The car has CO2 emissions of 123 g/km. The car was registered on 5 May 2020. The company pays the fuel expense including private fuel. 2) Buxton Plc provided John Hanson with an interest free loan of £30,000 on 6 April 2020. On 1 January 2021, John repaid £10,000 of the loan. The loan is not used for a qualifying purpose. 3) Buxton Plc also provided accommodation to John Hanson throughout the tax year 2020/21. The annual value of the accommodation is £8,000. Buxton Plc did not charge any rent to John Hanson. Buxton Plc paid £7,500 rent in the tax year 2020/21. The accommodation is not a job-related accommodation. 4) In July 2020, John Hanson received a long service award of £1,000 for his 25 years of service at Buxton Plc. 5) In October 2020, Buxton Plc provided a work mobile phone to John that cost the company £750.John used the phone for personal purposes in addition to using it for work. 6) John paid his own professional subscription to an approved professional body of £200 during 2020/21. Required: Calculate John's taxable employment income for 2020/21. Question 2 John Hanson is a senior executive with Buxton Plc. His annual salary for the tax year 2020/21 is £110,000. In addition to his salary, Buxton Plc provided the following benefits to John: 1) A Nissan Juke 1,600 CC motor car from 1 July 2020. The list price of the car is £14,000. It cost £11,000 to Buxton Plc. The car has CO2 emissions of 123 g/km. The car was registered on 5 May 2020. The company pays the fuel expense including private fuel. 2) Buxton Plc provided John Hanson with an interest free loan of £30,000 on 6 April 2020. On 1 January 2021, John repaid £10,000 of the loan. The loan is not used for a qualifying purpose. 3) Buxton Plc also provided accommodation to John Hanson throughout the tax year 2020/21. The annual value of the accommodation is £8,000. Buxton Plc did not charge any rent to John Hanson. Buxton Plc paid £7,500 rent in the tax year 2020/21. The accommodation is not a job-related accommodation. 4) In July 2020, John Hanson received a long service award of £1,000 for his 25 years of service at Buxton Plc. 5) In October 2020, Buxton Plc provided a work mobile phone to John that cost the company £750.John used the phone for personal purposes in addition to using it for work. 6) John paid his own professional subscription to an approved professional body of £200 during 2020/21. Required: Calculate John's taxable employment income for 2020/21.

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calculation of the taxable income of John for 202021 all figures in particulars amount basic salary ... View the full answer