UK Income Tax and Calculations

UK income tax and
calculations

Table of Contents
SECTION A.....................................................................................................................................3
SECTION B.....................................................................................................................................6
Impact of Taxes and Tax Planning..................................................................................................6
Overseas Workday Relief................................................................................................................7
REFERENCES..............................................................................................................................10
Appendix........................................................................................................................................11

SECTION A
Income tax payable: The income tax payable is a form of account on the financial statements of a
particularly in the business obligations segment. Inside one year, it is accumulated with tax
payments to the state. Fiona’s estimation of the income tax owed in the country of residence of
the corporation is subject to the existing tax legislation (Juhandi, Fahlevi and Setiadi, 2019). One
element capable of calculating the depreciation expenses of an organization is the income tax
payments. When investigating a distinction between such a business's taxable income and
income tax expenditure, a withheld tax liability emerges. The difference could be due to the
complexity as to when the real taxation is due. For instance, when measured by accounting
principles, a corporation may owe $1,000 in taxable income. In accordance of given brief
calculation of net taxable income and payable are computed. The scenario includes different
kinds of transactions which need to be addressed in accordance of UK taxation system that is as
follows:
Accommodation (Note 2)- Usually, the disparity between the rental the charge, if any, and the
gross value of the house is deductible if you are furnished with housing whether rent-free or with
a rate that is below fair rent in Fiona’s case.
Fiona is not the real owner of the house and also not paying rental for staying at company
accommodation; but she is paying Utility bills for the property which is tax deductable. She can
show this bills as expenses and can reduced her gross salary with whole amount of utility bills
paid by her. She can get a tax rebate for amount equivalent to £45,000.
The role entails a specific security danger and, if you are with the armed services, extra housing
is given for your protection in Fiona’s case scenario.
Cars and vans (Note 3) - Tax is due on a business vehicle whether a worker, business manager or
their families or household has access to it for personal use. Personal allocates resources travels
between family and office in almost all situations. For affordable vehicles, vehicles with higher
Carbon emission and automobiles which can run on renewable fuels, the return of income is
smaller. This will also be deductible if you are using your company's van personally. If all you
do, though, is carry the van back overtime with your but don't use it for any other essential
private reason, no tax would be owed in Fiona’s case scenario.

Car details:
Make – Hyundai Kona
Model – 2019 model; SUV, 5 seater, Hybrid Petrol
List Price - £25,000
Type of engine – Gear automatic, four cylinder Hybrid-Petrol engine with two horse power
pickup.
CO2 emission – Do not emit CO2; ecofriendly as it only emits hydrogen which is not harmful.
Often, vehicles are not taxable if:
 They are issued for company also, and
 They are not and will not be available for new use.
 In reality, they are not commonly used.
Personal expenses (Note 4): if Fiona remain away from family and friends while for work to
spend funds for cash advances, such as magazines, confidential phone conversations to the sound
system or cleaning, even without charge being taxed, you will get a certain percentage of these
costs made back from the boss. For stops in the UK, the cap is £ 5 a week or £ 10 a month for
stops overseas (About tax on benefits, 2020).
Fiona is not using Music system to earn income; hence £2000 will be considered as expenses and
profit of £1000 as the basis of difference between market value and actual payment is not
recordable as profit because purchasing Music system is part of consumption not the earning
money from it.
Fiona
Annual Salary
DOB 01-06-1981
810601
810601/10
Annual Salary = 81060.1
Annual Salary = 81060
Bonus 15000