David is concerned that his wife, Ceri, may have been taxed incorrectly in her new job. He says that Ceri’s P60 form for the year to 5th April 2021 shows she paid £4,590 income tax and £2,815 national insurance contributions. David explains that Ceri has chosen to make 5% employee contributions to her pension fund, the school makes a further 3% contribution. Ceri took all the other benefits offered in the school’s letter dated 30 December 2019. David also tells you that Ceri has received £3,250 Building Society interest and a dividend of £450 from Scottish Newcastle plc. A3) David explains that, after they moved into the school, he rented out the house he owns (which is still part-financed with a small mortgage loan). As David has never rented out a property, he asks you how to calculate his taxable rental income. Required: Calculate David’s net property business income for 2020/21.
David is concerned that his wife, Ceri, may have been taxed incorrectly in her new job. He
says that Ceri’s P60 form for the year to 5th April 2021 shows she paid £4,590 income tax
and £2,815 national insurance contributions.
David explains that Ceri has chosen to make 5% employee contributions to her pension
fund, the school makes a further 3% contribution. Ceri took all the other benefits offered in
the school’s letter dated 30 December 2019.
David also tells you that Ceri has received £3,250 Building Society interest and a dividend
of £450 from Scottish Newcastle plc.
A3) David explains that, after they moved into the school, he rented out the house he
owns (which is still part-financed with a small mortgage loan). As David has never rented
out a property, he asks you how to calculate his taxable rental income.
Required: Calculate David’s net property business income for 2020/21.
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