Employment Benefits Flashcards
employer pension schemes?
exempt
refers to occupational and personal schemes
trivial benefits?
exempt
refers to benefits <£50 for non-work reasons
mobile phone?
exempt
not subject to income tax
computer equipment?
exempt
as long as private use is insignificant
car parking?
exempt
car parking near work is an exempt benefit for income tax purposes
social events?
exempt employment benefit
as long as it’s <£150
canteen/gym/childcare facilities?
exempt
available to all employees and not subject to income tax
staff training?
exempt
work related, and not subject to income tax
relocation/trips back to UK?
exempt
when <£8k or when working abroad (inc. spouse/child)
not subject to income tax
health screening?
exempt
not private health insurance - that is a taxable benefit
limited to £6 per week if no evidence is provided
pension advice?
exempt
as long as <£500
accommodation?
taxable
annual value/rent paid + (MV/cost to employer - £75k) x interest rate
no taxable benefit if job related
accommodation expenses?
taxable
capped at 10% of net earnings if job-related
cars?
taxable
- list price x CO2 based%
- add 4% to non-RDE2 diesel cars (37% max)
- employee capital contribution capped at 5k
- fuel benefit charge x CO2 based%
how to calculate the taxable benefit for accommodation?
annual value/rent paid + (MV/cost to employer x interest rate%)
how to calculate taxable benefit for cars?
list price x CO2 based%
when do you add 4% to the CO2 based% of a car?
when it is a non-RDE2 diesel car
are employee capital contributions towards cars deductible from the list price?
yes, up to 5k maximum
what is the maximum CO2 based% for cars?
37%
car fuel?
taxable
fuel benefit charge x CO2 based%
van?
taxable
- taxed at flat rate
- £0 if zero emissions
van fuel?
taxable
- taxed at flat rate
loans?
taxable
if loan is less than 10k, benefit interest is saved
assets used privately?
taxable
taxed at 20% x MV (or rent if higher)
