I am working my way through the ICB payroll exam and have completed all the computerised questions and I am working on the manual bits.
There is, however, a question that I think I am tackling the wrong way as it seems to me to be a trick question ! (Probably not, I maybe just paronoid).
The question reads:-
"Matt Willis joins the company as a sales manager and is provided with a company car that has an assessable Benefit in Kind (BIK) of £6000, if he has a salary of £40,000 what will be his monthly deductions? (Assume no private pension contributions)."
My question is really two fold :- 1) Surely the company car would be on the P11D at the end of the year 2) Without knowing his tax code/NIC details can I really work this out ?
I am not looking for the answer - (it is an exam after all). Just some guidance as I am obviously missing something here.
I imagine you need to work out his tax code. Assume he receives normal personal allowance of 6475, reduce by 6000 to give a tax code of 47 and calculate from there. I think!
I remember I had this exam and had to make some assumptions. I put these assumptions down on the answer paper to show them how I got them how I got to the answer, it must have worked because I got 98 or 99%