Employment income

Question 1

What are the key exemptions from employment income?

Answer 1

• Job-related accommodation
• Subsidised canteen available to all staff
• Car parking (at or near place of work)
• Insignificant use of computer equipment
• Approved childcare payments or vouchers
- Where employee joined scheme pre 6 April 2011 = £55 p/wk
- Where employee joined scheme post 5 April 2011:
o BRTP = £55 p/wk
o HRTP = £28 p/wk
o ARTP = £25 p/wk
• Employer’s pension contributions
• Removal and relocation costs (up to £8,000)
• Staff entertaining (not more than £150 per head)
• Mobile phones (one per employee)
• Bicycles and safety equipment available to all employees
• Health-screening / checkup (one per tax year)

Question 2

What benefits are assessable to P11D employees only and not in the tax tables?

Answer 2

• Use of assets - 20% x market value
• New asset gifted - cost to employer
• Car benefit - list price x CO2 emissions %

Question 3

What benefits are assessable to all employees?

Answer 3

• Vouchers for goods or services
• Living accommodation:

Annual charge X
Expensive charge ([Value – 75,000] x official rate of interest* X

*The official rate of interest for tax year 2015/16 is 3.0%.

Question 4

What is the calculation for employment income?

Answer 4

salary + benefits

Question 5

When do you use the cost paid by the business for a property when calculating taxable benefits for accommodation?

Answer 5

When the business has owned the house for less than 6 years

Question 6

When do you use the market value a property when calculating taxable benefits for accommodation?

Answer 6

When the business has owned the property for over 6 years

Question 7

Do you time apportion taxable benefits for accommodation?

Answer 7

No

Question 8

When calculating a PAYE code, if allowances > deductions you…

Answer 8

Take away the last digit and add L at the end, or Y if they’re fucking old

Question 9

When calculating a PAYE code, if allowances < deductions you…

Answer 9

Take away the last digit, subtract 1 and put a K at the front

Question 10

How do you treat underpaid tax when calculating PAYE codes?

Answer 10

It goes on the benefits side and gross up by 100/20 for BRTP, 100/40 for HRTP

Question 11

When calculating the value of a house for the tax calc, when do you add any additions made in 15/16 to the cost?

Answer 11

In 16/17