UK tax system question plzzz help plzzz?

Question

QUESTION 2

John is employed as a sales representative with a medium-sized company. During the tax year ended 5 April 2008, his basic salary was £48,000.

He was provided throughout the year with a petrol-engined company car with an emissions rating of 190 grams/km and had cost the company £18,000 in June 2004, when it was 8 months old. John paid £3,000 towards the purchase of the car. Its list price at the date of manufacture was £24,000.

The company paid all running costs of the car, including petrol totalling £4,500. The car was used 20% for private purposes and Julian paid his employer £100 a month towards the use of the car and £50 a month for private petrol.

He also had the use of a Video Camera system which the company had bought for £1,500 on 6 October 2007, and which he had used at home ever since then.

The company purchased a flat in 2006 for £140,000, which Julian lives in and pays £500 a month for the use of the flat. The “annual value” of the flat is £8,000. It is used entirely for private purposes.

On 6 April 2005, he borrowed £16,000 from the company to buy a carvan for his family holidays. The company charged interest at 2% per annum on the loan, and he has not yet made any repayments.

REQUIREMENTS:

(a) Calculate John’s total income from employment for the year

(b) Calculate his tax liability for the year

(c) Calculate the amount of National Insurance payable by him and his employers.

Answer 1

Which bit are you having trouble with?  Perhaps when you come back from the pub you can enlighten us.

a)  Add up the various components.

The salary is straightforward.

The car benefit is 25% of the list price but don't forget to allow for the contribution made by John so it will end up less than this.

Where did Julian come into this?

The fuel benefit is 25% of £14,400 again adjusted for the contribution made by the employee.

The use of the video camera is based on the annual value as is the use of the flat.

b)  the calculation of the liability is straightforward (see the answer to your last question).  Ask a more specific question if you do not understand any particular step in the calculation.

c)  Again this is simply a matter of calculation given the rates applicable.  Where is your specific problem?

Answer 2

WHEN I was living in England I use to do my own tax up to the time I

Immigrated to the United State in the 70s 1970 to be exact. Now it seems as if one have to be a accountant or some number genus to do our income tax now It seems like England now take up the corrupt

ways of doing things, Do they?

GOOD LUCK TO YOU AND TAX PROBLEM MY BROTHER