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Task 2: Thomas decided to take on an assistant to help him with customer service and marketing. Thomas employed his assistant, whose name is James, at the start of the 2020/21. Thomas has allowed James to choose from one of two employment packages. James is keen to accept the package under which he would be better off after paying any income tax. He is already aware of the NIC implications so this can be ignored. Package 1: Salary 43,000 pa Living accommodation Thomas' parents own a small flat nearby, for which they currently have no tenant Purchased for 125,000 three years ago Annual value 5,950 Loan Package 2: Salary Laptop 16,000 Interest free Intended to help James purchase his own car 40,000 pa worth 2,000 when first made available to James Unlimited private use Use of car list price 14,000, petrol Emits 154g/km CO2 Task 2 required: For each employment package: (19 marks) a)Calculate James's: (1)Total employment income (ii)Income tax liability (iii) Take home pay after income tax only) b)Advise James which package he should accept to achieve his aim of maximising his take home pay (2 marks) Task 2: Thomas decided to take on an assistant to help him with customer service and marketing. Thomas employed his assistant, whose name is James, at the start of the 2020/21. Thomas has allowed James to choose from one of two employment packages. James is keen to accept the package under which he would be better off after paying any income tax. He is already aware of the NIC implications so this can be ignored. Package 1: Salary 43,000 pa Living accommodation Thomas' parents own a small flat nearby, for which they currently have no tenant Purchased for 125,000 three years ago Annual value 5,950 Loan Package 2: Salary Laptop 16,000 Interest free Intended to help James purchase his own car 40,000 pa worth 2,000 when first made available to James Unlimited private use Use of car list price 14,000, petrol Emits 154g/km CO2 Task 2 required: For each employment package: (19 marks) a)Calculate James's: (1)Total employment income (ii)Income tax liability (iii) Take home pay after income tax only) b)Advise James which package he should accept to achieve his aim of maximising his take home pay (2 marks)

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