Chapter 4 - Benefits Flashcards
What are employees with a company car/ van taxed on?
The list price + any optional accessories originally provided with the car + any further accessories provided later, costing £100 or more - capital contributions of up to £5,000 by the employee
What is the fixed taxable benefit on private use of a company van?
£3,960, additional £757 if private fuel available and zero if it a zero emission vehicle
How do you calculate the benefit to an employee provided with accomodation that is rented by the employer?
By taking the greater of:
1) Rent paid by employer
2) Annual Value
How do you tax the benefit to an employee provided with accomodation that the employer owns?
The annual value, with the following rules:
Additional charge if cost (aquiring and improving the property prior to the start of tax year) is greater £75,000: (cost-75,000)*offical rate of interest
When do you use the market value of a property as taxable benefit to employee?
If acquired longer than 6 years ago and if cost plus improvements exceeds £75,000
What is the formula to calculate taxable benefit on vouchers?
Taxable benefit = cost to employer
How do you calculate the taxable benefit of a loan from employer to employee?
Loan * official rate of interest - actual interest paid in year
How do you calculate athe average method of loan benefit?
(Opening loan + closing loan) / 2
When does a loan not qualify as a taxable benefit?
If the loan has a value of less than £10,000 throughout tax year.
What is the taxable benefit on other assets for private use (boats, furniture, tv etc)?
20% of the market value when first provided
