Chapter 4

Question 1

Job related accommodation rules:

Answer 1

• Required for job ie caretaker
• Provided for better performance of the employee’s duties / customary ie police officer
• Part of arrangements in force due to a special threat to the ee’s security ie government

Question 2

Not job related accomodation

Answer 2

Benefit in kind

The higher of:

• the annual value (if ‘er owns)
• any rent paid by the ‘er

Additional: expensive accommodation charge - if cost more than 75k (ALL PROPERTIES)

(Cost - 75000) * the official interest rate at the start of the tax year
Cost = original cost + any capital improvements before the start of the tax

If ‘ee makes any contributions then DEDUCT this from the benefit

Question 3

always round up or down?

Answer 3

ALWAYS ROUND DOWN

Question 4

Cars

Answer 4

All info on tables
1% saving if purchased after 01/04/20 (except from if zero-emission)
Max 37%
Always use list price

Vans: no tax on zero emission
Set 3500 fee on non-zero emissions

Question 5

Fuel

Answer 5

24600 * company car %
Van: 669 set charge

NO DEDUCTION FOR ‘EE CONTRIBUTIONS

Question 6

Van private use

Answer 6

Set fee (tax tables) of 3500
If list price - ignore - red herring
BUT if private use and zero emissions = free!

Fuel - travel to home and work is allowed
Any more personal travel - set fee of 669

Question 7

Assets available for private use

Answer 7

Taxable benefit is the higher of:

• 20% of MV when first provided
• rent provided by the ‘er (if asset is not owned by the ‘er)

Insignificant private use = no benefit

Significant private use:
Calculate the benefit in full and then apportion
ie. 60% private