Question

Abdul Jabbar works as a mechanical engineer at Fujairah Engineering. His employer has provided him the following taxable employment benefits during the tax year 2018/19:

Fujairah Engineering plc provided Abdul Jabbar fuel for private use during this same tax year 2018/19. Abdul Jabbar has contributed £500 towards fuel benefit.

Required:

Compute the amount of taxable benefit

Abdul Jabbar works as a mechanical engineer at Fujairah Engineering. His employer has provided him the following taxable employment benefits during the tax year 2018/19:

On 6 April 2018 through 5 April 2019, Fujairah Engineering provided Abdul Jabbar a new petrol car that has CO2 emissions of 105 g/km. Car had list price of £34,000 but Fujairah Engineering negotiated successfully for a discount and paid only £32,000 to the dealer.

Required:

Compute the amount of taxable benefit

Answer 1

Answer-1)Car fuel benefit charges; An director/employee who is provided with free fuel from his employer is taxed on the cash equivalent of fuel benefit. There is no taxable fuel benefit if your employer only pays for fuel for business purposes. in the above case, Abdul Jabbar has received £500 towards fuel for personal use this benefit is giving for his personal use for that all the amount received is taxable Abdul Jabbar has to pay tax on £500.

2)Fujairah Engineering provided Abdul Jabbar a new petrol car that has a cost of £32,000. Total amount paid by Fujairah Engineering to the dealer against this car is £32,000. So the taxable amount is £32,000.