1.【Answer】C。
The answer £1,076 assumes there is full recovery of child benefit. The answer £430 is the child benefit times 40%. The answer £753 does not adjust for pension contributions.
2.【Answer】A。
The provision of job-related accommodation does not give rise to a taxable benefit in kind for the employee however, where ancillary services are also provided (ie the household bils and furniture) an assessable benefit in kind does arise. Where the accommodation is job-related, the assessable amount for these benefits is limited to 10% of net remuneration excluding the household costs, giving £6,000 (10% of £60,000) in this example. However, the answer £9,000 was most commonly chosen. This would be the correct answer if the accommodation was not job-related. It is calculated as the cost to the employer of the household bills, plus the use of furniture, calculated at 20% of the cost of the asset, giving £9,000 (£7,000+(20%×£10,000)). This suggests that candidates may not have been aware of the rule to restrict the assessable amount where the accommodation is job-related.
