1. John Jefferies is a senior manager working in ABC LTD. He has a basic salary of 45000 per year.

His other incomes are as follows:

He has received bonuses of 5000 and 6000 on 1 May 2009 and 1 May 2010 respectively. These
bonuses were paid in respect of the company’s years ending 31 March 2009 and 31 March 2010.

A 2.0 litre diesel BMW car with a CO emission rate of 204g per km and a recommended list price of
26500.But ABC LTD paid 24500 because of a company discount scheme. Accessories to the value
of 6000 were added at the time when the car was first provided for John’s use in June 2009. John
contributed 4000 towards the capital cost of the car. He also paid 200 per month to the company
for the use of the company car. John used the car for both business and private use.

John has to receive fuel benefits from the company. Jhon contributed 50% of the fuel benefits.

On 31 December 2009 he has involved in a serious road accident and the car was written off. He was
charged with dangerous driving and the company met his legal costs of 2000.

John occupies a house which had cost the company 80000 when purchased in 2001 and on which
Expenditure of 30000on improvement had been incurred prior to being first occupied by John in
6th October 2009 when its market value was 140000. Its annual value is agreed at 3600. John paid
250 per month to the company for the use of the property.

Whilst John occupied the above property the company provided him with the use of furniture, which
had a market value of 10000.

Workplace parking which cost the company 600 per year.

Private medical insurance. This cost the company 500, but would have cost John 650 if he had
arranged this himself.

Luncheon vouchers amounting to 336 in respect of 224 working day.

A loan to help him purchase a yacht. ABC LTD advanced him 40000 on 6 April 2009 and charged him
interest at a rate of 1% per annum. John repaid 8000 of the loan on 6 July 2009, but the remaining
32000 remains outstanding.

A stereo system which John has to use since 6 April 2006. The system originally cost the company
800 and it had a market value of 250 at the time it was gifted to John on 6 October 2009.

John received 6 a day for 80 days of business trips in the UK and 9 a day for 60 days of business
abroad. All of this trips required overnight stays from home and the amounts paid were used to cover
the costs of personal expenses.
Other incomes:

Bank interest 800

Buildings society interest 1600
National Savings Certificate interest 2000
National Savings Bank Investment interest 700
Dividend from UK companies 900
Dividend from shares held in an ISA 850

Contributions:

Occupational pension contribution 2500

Personal pension contribution 4000
Contribution to charity under gift aid scheme 2800
Contribution to charity under payroll deduction scheme 1800
PAYE 10000

All the above figures are in actual amounts

Calculate the INCOME TAX COMPUTATION of John for the tax year 2009/10. Your answer should
Include:
a. Income tax liability
b. Income tax payable