Valentina was employed as a project manager by Vitalism Limited until being made redundant on 30 September 2023. The following information relates to Valentina’s employment with Vitalism Limited: Valentina’s gross salary was £45,000 for the year. Valentina was paid a statutory redundancy payment of £16,140 on 30 September 2023. On the same date Vitalism Limited also paid Valentina a further payment of £12,000 for the stress of losing office. The £12,000 payment was not required by the terms of Valentina’s employment contract. At the start of the tax year 2023-24 Valentina owed a £15,000 loan to Vitalism Limited. The rate of interest charged is 1% per year. Valentina made a single payment on 1 October 2023 to repay the loan balance plus interest. Until being made redundant on 30 September 2023 Valentina lived in an apartment rented by Vitalism Limited. The apartment has an “annual value” of £10,000. The rent paid by Vitalism Limited on the lease of the apartment was £12,000 per year and Vitalism Limited incurred additional expenses for ancillary services of £5,200 per year. Valentina paid her employer £1,300 rent each month for occupying the apartment. During the six-month period to 30 September 2023 Valentina used her own car to travel 11,000 miles on business. Vitalism Limited paid Valentina a mileage expense of 40p per mile for business use of her car. Required: Calculate Valentina’s income from her employment with Vitalism Limited for the tax year 2023-24.

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Calculating Valentinas Income for Tax Year 202324 Heres a breakdown of Valentinas income and how to ... View the full answer