Your accountancy practice has been approached by Kathy Kear to advise her on her tax position for the year ended 5th April 2024.She has provided the following details of her income and benefits. She would also like you to advise her parents Kathy was head hunted to join a research organisation on 6th August 2023. 

Her remuneration package was as follows: Salary: £6,000 per month since joining the company. She pays 7% of her salary into the company pension scheme. Her employer also contributes 5% of her salary into the pension scheme. Kathy was rewarded for her hard work and she got a one off bonus of £50,000 in December 2022. Living accommodation: She is provided with the use of the company flat, for which the company paid £900,000 in 2019. The flat has an annual value of £6,000. In June 2020 improvements were made to the flat costing £28,000. The running cost to the company is £16,000 for 2023/2024. Kathy makes monthly contribution of £750 towards the running cost of the flat. The company has also furnished the flat at the cost of £42,000. Loan: Her employer also lent Kathy£50,000 at an interest rate of 1% per annum.

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Lets break down Kathys income and benefits 1 Salary 6000 per month since Augus... View the full answer