Ruhee, is a Consultant working in an NHS Trust hospital. Ruhee was born in 1970 and joined
Question:
Ruhee, is a Consultant working in an NHS Trust hospital. Ruhee was born in 1970 and joined the hospital on 6 June 2021. Her gross pay for 2021-22 was £80,000 and income tax of £20,950 was deducted via PAYE.
Ruhee is provided with a motor car for both business and private motoring. Details of the cars provided during 2020-21 were as follows:
Make List price Emissions Fuel
£ g/km
6 June 2021 to 5 October 2021 Audi 18,600 97 Diesel
6 October 2021 to 5 April 2022 BMW 21,000 105 Petrol
Her employer paid for all of the running costs of both these cars but Ruhee contributed £200 per month for the private use of the BMW car. She also reimbursed her employer for all of the private fuel used by the Audi motor car (but not the BMW motor car). The Audi was registered in March 2019 and The BMW was registered in September 2020.
On 6 August 2021, the NHS Trust lent Ruhee £25,000 at an interest rate of 0.5% p.a. Ruhee repaid £10,000 of the loan on 6 March 2022.
Ruhee is provided with a mobile phone and is allowed to use this telephone for both business and private calls. The NHS Trust did not have to pay for the telephone itself but paid call charges of £400 during the year (of which £120 was related to private calls).
Ruhee's other income for 2021-22 consisted of gross pay from her previous employer of £10,920 (PAYE £2,260), dividends received of £7,300, and Bank interest of £2,000.
In the tax year, 2021/22 Ruhee has donated £4,000(Net) to charity under the Gift aid Scheme. She is a Non-Scottish Taxpayer.
Required:
- Prepare an income tax computation for Ruhee for the tax year 2021 -22. If any of her income is not taxable, explain why this is the case. (Assume that the official rate of interest is 2.25%).
- Calculate both Employer's and Employee's National Insurance Contributions (NICs) payable in relation to Ruhee for 2021-22.
Introduction To Federal Income Taxation In Canada
ISBN: 9781554965021
33rd Edition
Authors: Robert E. Beam, Stanley N. Laiken, James J. Barnett