KayPee

Kwame is being provided with accommodation in the form of a one-bedroom apartment near the office, which he uses during the week while working in London.
The apartment cost the employer 170,000 GBP and has an annual value of 7,200 GBP and would command a market rent of 950 GBP per month (if it was rented out)
Kwame pays the utility bills, but his employer pays the council tax, which was 1,400 GBP in the year ended 5 April 2009.
Kwame has furnished the property himself with the exception of a TV set (worth 1,200 GBP), which has been provided by the company since February 2008
Required:
Calculate the taxable benefits assessable on Kwame in 2008/09.
You should assume that the O.R.I is 6.25%.

GBP (British Pounds)

I think this is a Job-Related Accommodation because Kwame is given just a one-bedroom accommodation near the office and he uses during the week while in London which presupposes he doesn't stay in London. It is provided for the better performance of his duties.???

So I believe the workings should go like this:
1.Property
Exempt(Nil)
2.Expensive element
Exempt(nil)
3.Services Provided
Council tax 1,400
TV Set (20%*1200)240
sub total 1,640

I can't get the assessable benefit because the question falls short of telling us his salary and other benefits.

I'm confused was I right in stating it was a Job-Related Accommodation?



What if it is Non-job related accommodation?

Then would my calculations go like this:

Annual Value-7,200(GBP)
Additional benefit GBP(170,000-75,000)*6.25%=5,938
Council tax-1,400
TV set(Note) 1,200*20%*14/12=280
Total benefit=14,818(GBP)

Note:Kwame has had the TV since Feb 2008.So am I right in multiplying the benefit from the TV set by 14/12 or should it be 12/14???

Someone help for I am :?

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