Coursework Assignment Example | Topics and Well Written Essays - 1250 words

Coursework - Assignment ExampleStarting April 2016, the 3% supplement for diesel cars pull up stakes be scrapped (Deloitte, 2012). The other important adjustments that have been made include exclusion of certain security system enhancement, which pass on not be considered henceforth, as accessories when estimating the benefits corresponding to the cash value in respect to company cars used for private purpose. These adjustments will be put into force from 6 April 2011 and will be applied retrospectively. Private elicit benefit The benefits cash equivalent in respect to free fuel offered to employees will increase because the multiplier used to estimate them will be increased from ?18,800 to ?20,200, a change that took effect from April 2012. Furthermore, this multiplier will further increase by 2 pct above the inflation rate, taking effect from 2013 up to 2014. Capital allowances and lease rental obstruction There shall be an extension (up to April 2015) of the time through whi ch 100 perpenny of capital allowances for the initial social class are allowed on car expenses. Nonetheless, starting April 2013, the emissions measurement will drop off from one hundred teng/km to 95g/km in addition, this measurement will be incorporated into the main pool and charged 18 percent per annum instead of 8 percent special rate pool, which will drop off from 160g/km to 130g/km. In this regards, tax relief extended to employers will be pegged on the lease rentals for cars whose emission exceeds 130 g/km (limited at 15%) (Deloitte, 2012). Vehicle Excise Duty (VED) The VED increase was aligned with the Retail Prices top executive (RPI) as of April 2012. However, the Government expressed interest in repealing the calculation of VED over the medium term found on the views gathered from motoring groups (Deloitte, 2012). QUESTION TWO Petrol driven 5 door hatchback, with carbon dioxide emissions of 139g/km Employee benefit from car = ?18,000* 85/100*40/100*18/100 = ?1,101.60 Since the employee is provided with fuel for private use of the company car, this benefit will be taxed. The value to be taxed is pegged on the locomotive engines fuel efficiency. The percentage charge for this benefit is the same as for the car benefit and, therefore, it will be calculated as follows . ?20,200*40/100*18/100 = ?1,454.4 The total cost to the music director is ?1,101.60 +?1,454.4 = ?2,556 Although the fuel benefits have attracted some tax, I would urge the manager accept petrol for private motoring, which is provided by his employer because this will lead to some other benefits. These benefits, which are not additionally taxed include insurance, repairs, maintenance and servicing, social station of a motoring organization, and road tax. Ideally, the cash value of these benefits is more than the car tax paid payable to the fuel used for private purpose. As such, the employee will get at least ?600 per annum dep expiry on the dependability of the vehicle. However, if the manager is sure that refusing to take the fueling benefit will not lead to insurance increases, whence they can as well opt to do away with the benefit. Cost to the employer Capital allowances Twenty per cent is claimed on the written-down cost every year therefore, the following capital allowances will be claimed for the year ending 31st March 2013 The car does not fall under low-emission category since it exceeds 110g/km of CO2 and, therefore, the 110 per cent deduction for the first