Employment income

Question 1

what is the main advantage of being self employed from a tax perspective

Answer 1

you receive gross income so better for short term cash flow

Question 2

when is an amount treated as received for employees

Answer 2

the earlier of cash receipt or when the employee becomes entitled to it

Question 3

when is an amount treated as reiceved for directors

Answer 3

earlier of:

cash receipt

when they are entitled to it

when its credited to the accounting records

end of companys period of accounts

the time the amount is determined

Question 4

5 allowable deductions

Answer 4

contributions to pension scheme

fees and subs to professional bodies

travel expenses

capital allowances on plant and machinery

donations to charity under payroll scheme

Question 5

when you can you claim travel

Answer 5

when you have a travelling appointment for example a service engineer

travel to a temp workplace

travel that doesnt start and end at home

Question 6

when is a workplace permenant

Answer 6

when an employee spends at least 40% of his working time at the workplace

the period expected to work exceeds 24 months

Question 7

what happens when your employers pay you less than the statutory mileage allowance

Answer 7

you can claim a deduction for the shortfall

Question 8

what happens when your employers pay you more than the statutory mileage allowance

Answer 8

the excess is a taxable benefit