Chapter 5 Employment income

Question 1

Allowable deductions for employment income

Answer 1

Employee contributions into occupational pension schemes

Relevant professional subscriptions, (paid by employee)

Allowable travel costs paid by the employee (see below)

A millage allowance less than HMRC amounts

Give As You Earn (GAYE) charitable donations

Any other expenses incurred WHOLLY, EXCLUSIVELY and NECESSARY for purposes of employment

Question 2

Statutory millage allowances

Answer 2

In hardmans
for cars:
45p up to 10,000
25p in excess

Question 3

Taxable benefit of Employee loans ( if low or no interest)

Answer 3

Loan value *2.25% - actual interest paid