employment income

Question 1

what is a trivial benefit?

Answer 1

cost less than £50
not cash or a cash voucher
not provided in recognition of services

Question 2

is use of free/subsidised on-site canteen exempt?

Answer 2

yes, if available to all employees

Question 3

are sports facilities only available to employees exempt?

Answer 3

yes

Question 4

are vouchers for approved childcare exempt?

Answer 4

for those in a scheme before 6 April 2011, up to £55 per week is exempt. For those joining afterwards, £55pw for basic taxpayers, £28pw for higher rate taxpayers and £25pw for additional rate taxpayers

Question 5

is a health screening per year exempt?

Answer 5

yes

Question 6

are glasses and eye test exempt?

Answer 6

yes, for people who use VDUs

Question 7

how much pa is exempt for medical treatment to help the employee return to work?

Answer 7

£500 p.a.

Question 8

is use of bicycles exempt?

Answer 8

yes

Question 9

are work buses and subsidies to use public bus services exempt?

Answer 9

yes

Question 10

are costs of vehicle battery charging places at/near work exempt?

Answer 10

yes

Question 11

are travel expenses exempt?

Answer 11

yes, when public transport is disrupted, for late night journeys, and for when car sharing arrangements break down

Question 12

is provision of a car parking space at/near work exempt?

Answer 12

yes

Question 13

how much of pension advice/tax planning advice exempt?

Answer 13

£500 per tax year. if above, the full amount is payable

Question 14

are mobile phones exempt?

Answer 14

yes, one per employee

Question 15

are work related training courses exempt?

Answer 15

yes

Question 16

are social events exempt?

Answer 16

only if the event is annual and it costs less than £150 per head. If an event costs more than £150, the full amount is taxable. if there is more than one event in the year, the total cost of events less than £150 will be exempt and the other events taxable.

Question 17

non-cash long service awards are exempt. how many years of service must be done and how much is the max per year of service?

Answer 17

20 years service
max £50 per year of service

Question 18

awards under a staff suggestion scheme can be exempt. what is the max award?

Answer 18

£5,000

Question 19

non-cash gifts from third parties can be exempt up to a maximum amount. whats the amount?

Answer 19

£250p.a. per donor

Question 20

what is the limit for entertainment from a third party to be exempt?

Answer 20

no limit

Question 21

are removal expenses exempt?

Answer 21

yes, up to £8,000

Question 22

are payments towards costs of working from home exempt?

Answer 22

yes but need supporting documents if more than £6 per week

Question 23

how much of personal expenses when working away from home are exempt? if limit exceeded, is all of it taxable?

Answer 23

up to £5 per night in the UK and £10 when abroad. if limit exceeded, all is taxable, not just the excess

Question 24

is job-related accommodation taxable?

Answer 24

no

Question 25

how can a director qualify for necessary/customary job-related accomodation?

Answer 25

own at most £5% of the shares
be a full-time working director