. Task 2: Thomas decided to take on an assistant to help him with customer service and...

 

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Task 2: Thomas decided to take on an assistant to help him with customer service and marketing. Thomas employed his assistant, whose name is James, at the start of the 2020/21. Thomas has allowed James to choose from one of two employment packages. James is keen to accept the package under which he would be better off after paying any income tax. He is already aware of the NIC implications so this can be ignored. Package 1: Salary Living accommodation Purchased for £125,000 three years ago Annual value £5,950 Loan Package 2: Salary Laptop £43,000 pa Thomas' parents own a small flat nearby, for which they currently have no tenant Use of car £16,000 Interest free Intended to help James purchase his own car £40,000 pa worth £2,000 when first made available to James Unlimited private use list price £14,000, petrol Emits 154g/km CO2 Task 2 required: For each employment package: a)Calculate James's: (i) Total employment income (ii)Income tax liability (iii) Take home pay (after income tax only) b)Advise James which package he should accept to achieve his aim of maximising his take home pay (2 marks) (19 marks) Task 2: Thomas decided to take on an assistant to help him with customer service and marketing. Thomas employed his assistant, whose name is James, at the start of the 2020/21. Thomas has allowed James to choose from one of two employment packages. James is keen to accept the package under which he would be better off after paying any income tax. He is already aware of the NIC implications so this can be ignored. Package 1: Salary Living accommodation Purchased for £125,000 three years ago Annual value £5,950 Loan Package 2: Salary Laptop £43,000 pa Thomas' parents own a small flat nearby, for which they currently have no tenant Use of car £16,000 Interest free Intended to help James purchase his own car £40,000 pa worth £2,000 when first made available to James Unlimited private use list price £14,000, petrol Emits 154g/km CO2 Task 2 required: For each employment package: a)Calculate James's: (i) Total employment income (ii)Income tax liability (iii) Take home pay (after income tax only) b)Advise James which package he should accept to achieve his aim of maximising his take home pay (2 marks) (19 marks)

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Amanda Rapomantaisit 20 Monthly gross Salary P310 20000 C06214 Loran Blo Pay Period April 11512... View the full answer