4 - employment income

Question 1

what is the receipts basis when referring to employment income

Answer 1

you include any money received during the tax year

Question 2

what are the three conditions for something to be classed as job related accommodation

Answer 2

the accommodation is necessary for the proper performance of duties
the accommodation is provided for better performance of duties and it is customary for accommodation to be provided
the accommodation is provided as part of arrangements in force because of a special threat to employees security

Question 3

how do you calculate basic rental benefit

Answer 3

if the property is owned by the employer, the benefit is the rent that would have been paid if it had been let at annual value
if the accommodation is rented by the employer, the amount is the higher of the rental value and the rent actually paid by the employer

Question 4

how do you calculate additional yearly rental benefit

Answer 4

this applies to expensive accommodation
cost of providing accom less 75000 x official rate of interest at the start of the tax year

Question 5

what is ‘expensive accommodation’

Answer 5

accomomdation which costs the employee more than 75000 to provide

Question 6

when are cars a taxable benefit

Answer 6

when available for private use by the employee

Question 7

what is the basis of a car taxable benefit

Answer 7

list price of the car plus any accessories provided with the car

Question 8

how do you work out the full charge of a car taxable benefit

Answer 8

multiply the basis by the co2 emission

Question 9

what is the percentage for a car with CO2 emissions of 0 g/km

Answer 9

2%

Question 10

how do you treat hybrid cars

Answer 10

depends on the electric range of the car

Question 11

how do you treat diesel cars

Answer 11

the percentage is increased by 4%, unless they met the RDE2

Question 12

how to treat fuel costs paid by the employer?

Answer 12

the percentage of co2 emission value is applied to a fixed amount of 25300

Question 13

what happens if an employee contributes towards the car

Answer 13

there is a reduction in the cost of the overall benefit
no reduction in fuel expense benefit

Question 14

how does the taxable benefit for vans work

Answer 14

one annual amount of 3600, unless there is 0 co2 emissions

Question 15

how does the taxable benefit for van fuel work

Answer 15

there is an annual benefit amount of 688

Question 16

how does prorating work for vehicle benefits?

Answer 16

you can allocate it based on time but the vehicle must be unavailable for at least 30 consecutive days

Question 17

what happens if an employee contributes towards the van cost

Answer 17

reduction if the employee pays for use, no reduction in fuel benefit

Question 18

how do you tax personal use of an asset?

Answer 18

higher of annual value or the amount an employer pays to rent the asset

Question 19

what is the annual value of an asset (in relation to personal use)

Answer 19

20% of market value when first provided for private use

Question 20

what happens to other beenfits`

Answer 20

the taxable benefit is the cost to the employer of providing the benefit less any anmount paid for the benefit

Question 21

what is the limit for an exempt social event

Answer 21

up to 150 per head including VAT, if this is more then the whole amount is taxable

Question 22

what happens to tax codes with a marriage allowance

Answer 22

N for the person giving up their allowance, M for the person receiving it

Question 23

what tax code is given if allowances less deductions gives a negative figure

Answer 23

K

Question 24

what benefits cannot be taxed by voluntary payrolling

Answer 24

living accommodation and low-interest loans