Chapter One - Income Tax - Employee Benefits

Question 1

What is the taxable benefit for a living accomodation provided by the employer?

Answer 1

1. If the employer provides the employee the accomodation, it is the annual rent that is the taxable benefit
2. If the employer owns the property, it is also the annual rent as the taxable benefit, but there is also an additional charge where the accomdation value exceeds £75,000, there is a charge of 2.25%

Question 2

What is the additional charge if the accomdation provided is furnished?

Answer 2

There is an additional 20% on the market value of the furniture and equipment provided`

Question 3

How are company cars taxed?

Answer 3

List Price x C02 emissions %

Question 4

What are the CO2 emissions for a car registered before April 2020?

Answer 4

16% on 55g/km then an additional 1% for extra 5g/km

Question 5

What are the CO2 emissions for a car registered after April 2020?

Answer 5

14% on 55g/km then an additional 1% for extra 5g/km

Question 6

What is the additional charge for cars that do not meet the Real Driving Emissions 2 standard?

Answer 6

4%

Question 7

How do you calculate fuel for private use?

Answer 7

£24,500 multiplied by same % used for the CO2 emissions

Question 8

If the employee contributes to the buying cost of the company car, what is the maximum that can be deducted from the list price?

Answer 8

£5,000

Question 9

What is the taxation for cheap beneficial loans from employers?

Answer 9

The difference between the 2.25% HMRC interest and the interest of the loan then multiplied by the value of the loan