Jeff is employed by Rockwood Ltd, and as part of his salary package he receives the...
Jeff is employed by Rockwood Ltd, and as part of his salary package he receives the use of a company car that cost $30,000 and was provided to him on 1 January 2018. Select the correct alternative: Group of answer choices
Jeff will not include the costs relating to the car in his assessable income.
Jeff will include the cost of the car in his assessable income under s 21A ITAA36.
Jeff will include the cost of the car in his assessable income under s 15-2 ITAA97.
Jeff will include the cost of the car in his assessable income under s 6-5 ITAA97.
Homework Answers
Option (a) is correct. Jeff will not include the costs relating to the car in his assessable income.
Option (b) is incorrect. Jeff will not include the cost of the car in his assessable income under s 21A ITAA36.
Option (c) is incorrect. Jeff will not include the cost of the car in his assessable income under s 15-2 ITAA97.
Option (d) is incorrect. Jeff will not include the cost of the car in his assessable income under s 6-5 ITAA97.
Answer is a. Jeff will not include the costs relating to the car in his assessable income.
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Jeff is employed by Rockwood Ltd, and as part of his salary
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tax tables:
Rates and allowances
INCOME TAX (2018/19)
%
Basic rate £1 – £34,500 20%
Higher rate £34,500 – £150,000 40%
Additional higher rate £150,001 onwards 45%
A starting rate of 10% applies to savings income where it falls
within the first £5,000 of taxable income.
Personal allowances (2018/19)
£
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2 Henri has received a job offer from Potis Ltd under the following terms: Annual salary: £9o,o00 Car: a choice of a company car or a mileage allowance for the use of his own car for business purposes. The details with respect to Henri's car choices are as follows: Company car: Potis Ltd will provide Henri with a petrol company car with CO2 emissions of 129 8/km. No private fuel will be provided. It is estimated that Henri will use...
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tax tables:
Rates and allowances
INCOME TAX (2018/19)
%
Basic rate £1 – £34,500 20%
Higher rate £34,500 – £150,000 40%
Additional higher rate £150,001 onwards 45%
A starting rate of 10% applies to savings income where it falls
within the first £5,000 of taxable income.
Personal allowances (2018/19)
£
Personal allowance 11,850
Car fuel benefit (2018/19)
The base figure for calculating the car fuel benefit is
£23,400.
Approved mileage rates (2018/19)
Car and vans: 0 – 10,000 miles 45p...
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