Disallowed Expenditure - Remuneration Flashcards
1
Q
Most payments to staff are…
A
Allowable
2
Q
Allowable payments to staff include
A
Salaries, bonuses and redundancy payments, and the cost of providing benefits
3
Q
Employer’s contributions to pension schemes are…
A
Allowable
4
Q
Training expenditure for employees is…
A
Allowable, provided that the training is aimed at improving the skills needed in the business
5
Q
Training costs for a sole trader are…
A
Allowable, if they are maintaining existing skills
6
Q
What is an appropriation?
A
A withdrawal of funds from a business’s profit
7
Q
Appropriations are
A
Disallowable
8
Q
What are some common examples of appropriations?
A
- business owner’s salary
- drawings made by sole trader / partner
9
Q
Unreasonable payments made to family members are
A
Disallowable
- add back the difference between the family member’s payment and the ordinary payment
