NATIONAL ECONOMICS UNIVERSITY
BTEC HND IN BUSINESS AND MANAGEMENT
Assignment Cover Sheet
NAME OF STUDENT | |
REGISTRATION NO. | |
UNIT TITLE | Unit12: Taxation |
ASSIGNMENT TITLE | Personal Income tax, Corporation Tax and Capital Gain Tax |
ASSIGNMENT NO | 1 – Work in pair |
NAME OF ASSESSOR | Dao Ngoc Tien, Nguyen Thu Hang |
SUBMISSION DEADLINE | 10 am, Friday, 30 May, 2014 |
We hereby confirm that this assignment is our own work and not copied or plagiarized from any source. We have referenced the sources from which information is obtained by us for this assignment.
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You are required to carry out the following tasks:
Simon was born on 14 May 1960. He is a manager working for Able plc, a large UK resident company.
In 2009–10 Simon received a gross salary of £100,000 and on 16 February 2010 he received a bonus of £25,000 based on Able plc’s results for the year ended 31 December 2009.
In addition Simon received the following benefits in 2009–10:
i. The use of a company car. The car was a 1200 petrol driven Audi with a CO2 emission rate of 150 grams per kilometre. The recommended list price was £60,000, but Able plc paid £55,000 because of a company discount scheme. Accessories to the value of £5,000 were added at the time that Simon took delivery of the vehicle, which was on 6 October 2006. The company paid for all of the running costs, including the fuel, which amounted to £4,500 for the period to 5 April 2010. Simon used the car for both business and private use. Able plc did not provide Simon with the use of any other car before 6 August 2006.
ii. He received an interest-free loan of £4,500 and need only be repaid on his leaving the company. The loan will be used to purchase various household items.
iii. The use of a company owned house. The house was used permanently by Simon and his family from 6 December 2009. The house had been purchased by the company for £180,000 in May 2002 and had a market value when Simon moved in of £200,000. The annual rateable value of the house was £12,000 and Simon paid £200 a month to the company for the use of the property. Simon paid for all of the household expenses. The house is not classed as job-related.
iv. General business expenses. Simon received an amount of £8 a day for 50 days, including 30 days of business trips in the UK and 20 days of business trips abroad. All of these trips required overnight stays away from home and the amounts paid were used to cover the costs of incidental expenses such as newspapers and telephone calls home.
v. He received luncheon voucher worth £6 per day, an amount equivalent to the normal cost of the meals. The normal working year is 200 working days.
vi. His son, aged three, is presently attending nursery, which is approved childminder status. The company is currently pay nursery fees of £3,600.
vii. On his birthday, the company give him a present worth £2,000.
viii. He makes a qualifying aid donations of 320 of £650 during the year.
ix. They book and pay £10 000 a trip to Vietnam for his family.
x. He received an Iphone5S, which is worth £600 for his use.
xi. Simon owns a country cottage, which he uses as a holiday home for 4 weeks and lets furnished for 48 weeks at £5 per week. His expenses for 2009-2010 were the following :
Repair to furniture £300
Council tax and water rates £1800
xi.Simon’s other income for 2009–10 was:
Building Society Interest £7,200