Answer to Question #84020 in Accounting for Jay

Question

Xiaolin is an employee of Carlson Ltd. Throughout the tax year 2016/17, Carlson Ltd
provided Xiaolin with a mobile telephone that cost £200, private medical insurance at a
cost to Carlson Ltd of £3,000 per year and paid for Xiaolin’s son to attend a local public
school. The cost to Carlson Ltd for the school fees was £20,000.
Class 1A National Insurance contributions payable by Carlson Ltd on these employment
benefits during 2016/17 amounted to:
A. £2,760
B. £3,414
C. £0. Class 1A National Insurance contributions would not be payable by Carlson Ltd
D. £3,174

Answer 1

£3,000 + £20,000=23,000

£23,000*13.80%=£3,174

The Answer for this problem is (D. £3,174)