Ryan Street is an employee of Maximus Ltd; in 2011-12 he earned a basic salary of £56,000. He receives the following benefits from the company:
He has the use of a company house which has an annual value of £10,750 which cost the company £250,000. Ryan makes no contribution towards the cost of the house or its running costs which cost Maximus Ltd £2,300 in 2011-12. The house has been provided furnished which cost the company £8,500. The house is not necessary for Ryan to do his job.
He is provided with a company car with a list price of £28,000 and an emission rating of 167g/km. Ryan makes no contribution to any running costs.
Ryan received an interest free season ticket loan of £2000.
The company provide Ryan with a mobile phone and pay all the expenses related to this
The company provided in-house sports facilities to all employees for the year 2011- 12
Maximus Ltd operate a staff suggestion scheme - Ryan was awarded £500.00 in August 2011, in recognition of a suggestion that he put forward which saved the company over £25,000 in its first year of implementation.
In addition to his basic salary he earned and was paid £5000 in target related bonuses which he received in March 2012.
In addition to his employment income Ryan has savings with a building society, has a share portfolio and an investment held in an ISA.
These generated the following income for the year 2011-12:
Building society interest received - £250 Dividend Income received - £1800
ISA Interest received - £150
Ryan's wife Sally is a part time self employed hairdresser; her accounts to 31st March 2012 show the following:
Sales - £13,800
Cost of Sales - (£ 2,400)
Gross Profit - £11,400
Less:
Telephone - 200
Insurance - 350
Motor Expenses - 800 (1)
Net Profit - £10,050
(1) 25% of the motor expenses relate to private use.
Required:
(i) Prepare the income tax and national insurance calculations for Ryan Street. Indicate the requirements for treatment of each of the additional benefits he receives.
(ii)Prepare the income tax calculation for Sally Street.
(iii) State the dates that any returns and payments should be made to HMRC by Ryan and Sally Street.