Chapter 20 - Misc Benefits & Benefit Reporting Flashcards
Will there be a taxable benefit where a zero emissions van is provided to an employee?
No
What is the van rate for 2024/25
£3,960
What is the van fuel rate for 2024/25
£757
There is no reduction in the benefit where an employee makes a contribution towards private fuel for the van
What is the cash equivalent where an employer provides an employee with a cash voucher?
The cost to the employer of providing the voucher to the employee
Per mileage allowances, how are profits and losses treated?
Profits are taxable, losses are deductible
How can a passenger payment be made free of tax?
- The driver & passenger are fellow employees making the same business journey
- The passenger payments do not exceed the approved amount of 5p per mile
- The employee physically receives the passenger payment from the employer
When did employer childcare schemes close to new entrants?
4 October 2018
What is the child care relief for a basic rate TP?
£55 per week
What is the child care relief for a higher rate TP?
£28 per week
What is the child care relief for an additional rate TP?
£25 per week
For child care relief, what income is taken into account?
ONLY earnings from employment
What are the contributions to a tax-free childcare scheme account topped up by?
25% of the contribution to a max of £2,000 per annum per child
The reimbursement of removal expenses is exempt up to a maximum of what amount?
£8,000
What expenses qualify as removal expenses?
- Legal fees in connection with the acquisition of a new residence / disposal of old residence
- Costs of transporting belongings
- Travel to visit new area
What are the incidental expenses thresholds for UK & abroad travel?
UK - £5 per night
Abroad - £10 per night
What is the threshold for awards by way of staff suggestion?
£5,000
What factors have to be met for a long-service award to be tax free?
- £50 per year of service
- Employee has had at least 20 years service with the employer
Define trivial benefit
A benefit that does not exceed £50 & is provided for a non-work reason
e.g sending birthday flowers to an employee
What is a type A OpRA?
The employee gives up a right to receive earnings - a salary sacrifice
What is a type B OpRA?
The employee chooses to receive a benefit rather than an amount of salary
What happens when salary is exchanged for an exempt benefit?i
The employee is taxed on the amount of salary foregone - the taxable benefit will be nil
List some examples of tax exempt benefits
Travel card loan
Mobile phone
Car park voucher
Payment to pension scheme
List some examples of benefits that are taxable
Use of company van
Loan of computer
