Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

TC > Important allow/disallow etc > Flashcards

Important allow/disallow etc Flashcards

1
Q

Exempt/taxable income
Interest on national saving certificates

A

exempt

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Exempt/taxable income
Income from ISA

A

Exempt

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Exempt/taxable income
betting, lottery and premium bond winnings

A

exempt

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Exempt/taxable income
Some social security benefits (housing/child)

A

exempt

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Exempt/taxable income
First 7,500 gross annual rent under rent a room

A

exempt

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Exempt/taxable income
scholarships

A

exempt

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Exempt/taxable income
Income tax repayment interest

A

exempt

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Exempt/taxable income
Universal credit

A

exempt

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Exempt/taxable income
Apprenticeship bursaries paid to care leavers

A

exempt

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Exempt/taxable income
Payments under compensation schemes

A

Exempt

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Rental - allowable expenses
Legal professional and admin costs

A

allow

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Rental - allowable expenses
Interest paid relating to non-residential property (loan to buy)

A

Allow

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Rental - allowable expenses
Rates and taxes paid by landlord

A

allow

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Rental - allowable expenses
ancillary services provided by landlord (cleaning gardening)

A

allow

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Rental - allowable expenses
insurance for property

A

allow

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Rental - allowable expenses
repairs and maintenance

A

Allow

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Rental - allowable expenses
fixed rate deduction for motor vehicles

A

allow

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Relief for finance costs is given as a

A

tax reducer and is 20% of the lower of
- finance cost for year + bf
- property income for tax year (after b/f losses)
- adjusted total income that exceeds PA

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Rental - allowable expenses
purchase of original item

A

Not allowed - capital

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

employees - allowable travel expenses
not ordinary commuting incurred necessarily for performance of duties of the office or employment

A

allowable

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

employees - allowable travel expenses
home to work for site based employees

A

allowable

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

employees - allowable travel expenses
Home to work where tax payers home is work location

A

allowable

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

employees - allowable travel expenses
where employee works at temporary workplace for less than 24 months

A

Allowable

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

employees - taxable / exempt benefit
vouchers

A

taxable - cost to employer less anything paid by employee

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

employees - taxable / exempt benefit
living accommodation - job releated

A

exempt

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

employees - taxable / exempt benefit
living accommodation - not job related

A

taxable on basi rental benefit and additional yearly rent for anything over 75k
Cost is original value unless provided more than 6 years after purchase then MV when provided to employee

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

employees - taxable / exempt benefit
Expenses connected with provision of living accomodation

A

taxable on cost to employee

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

Living accommodation - not job related - additional yearly rent calculation

A

2% * excess over 75k

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

employees - taxable / exempt benefit
Vans for private use

A

taxable - 3600 flat rate less employee contributions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

employees - taxable / exempt benefit
zero emissions vans for private use

A

0

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

employees - taxable / exempt benefit
private fuel for VANS

A

TAXABLE 688

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

employees - taxable / exempt benefit
provision of furniture to living accomodation

A

20% MV when first provided for employee use

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

employees - taxable / exempt benefit
additional expenses where job related accommodation limited to

A

10% employees net. yearnings

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

employees - taxable / exempt benefit
employment related loans total < £10,000

A

exempt

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

employees - taxable / exempt benefit
asset transferred to employee (often after private use)

A

taxable
benefit is greater of
current market value
mv when first provided - amounts already taxed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

employees - taxable value of benefits through salary sacrifice

A

higher of taxable value and value of cash sacrificed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

employees - taxable / exempt benefit
pension savings

A

exempt

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

employees - taxable / exempt benefit
employer provided pension advice up to £500 per year

A

Exempt

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
39
Q

employees - taxable / exempt benefit
Trivial benefit < £50 not cash or cash voucher and provided for non-work reason

A

Exempt - annual cap £300 in respect of certain directors

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
40
Q

employees - taxable / exempt benefit
Counselling and outplacement services and retraining courses on termination of employment

A

exempt

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
41
Q

employees - taxable / exempt benefit
childcare facilities run by or on behalf of the employer

A

exempt

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
42
Q

employees - taxable / exempt benefit
one mobile phone available for private use

A

exempt

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
43
Q

employees - taxable / exempt benefit
free or subsidised meals in a canteen where available to all staff

A

exempt - however not where through salary sacrifice

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
44
Q

employees - taxable / exempt benefit
total loans not exceeding £10,000 per tax year

A

exempt

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
45
Q

employees - taxable / exempt benefit
Social event paid for up to £150 per head per tax year

A

exempt

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
46
Q

employees - taxable / exempt benefit
entertainment provided by third parties

A

exempt

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
47
Q

employees - taxable / exempt benefit
non cash gift from third party up to £250 per tax year from same donor

A

exempt

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
48
Q

employees - taxable / exempt benefit
parking space at or near work

A

exempt

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
49
Q

employees - taxable / exempt benefit
awards up to £5,000 for staff suggestion scheme

A

exempt

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
50
Q

employees - taxable / exempt benefit
work related training

A

exempt

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
51
Q

employees - taxable / exempt benefit
work related training

A

exempt

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
52
Q

employees - taxable / exempt benefit
sports and recreation facilities available to employees but not to general public

A

exempt

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
53
Q

employees - taxable / exempt benefit
payments to additional cost of working from home

A

exempt - 6£ no evidence

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
54
Q

employees - taxable / exempt benefit
personal incidental expenses whilst away on business

A

exempt
£5 per night UK
£10 per night abroad

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
55
Q

employees - taxable / exempt benefit
overseas medical treatment whilst working abroad

A

exempt

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
56
Q

employees - taxable / exempt benefit
payment of travel expenses where public transport id disrupted, late night journeys and where car share arrangements break down

A

exempt

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
57
Q

employees - taxable / exempt benefit
use of bicycles of cyclist safety equipment if available to all employees

A

exempt

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
58
Q

employees - taxable / exempt benefit
works buses and subsidies to public bus services

A

exempt

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
59
Q

employees - taxable / exempt benefit
provision of vehicle battery charging at or near workplace for employee who uses vehicle (even as passenger)

A

exempt - if made available generally to employees at that workpalce

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
60
Q

employees - taxable / exempt benefit
Reasonable removal expenses paid for by an employer for new employment position or relocation

A

exempt up to maximum £8,000

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
61
Q

employees - taxable / exempt benefit
non cash long service awards in respect of at least 20 years of service not exceeding £50 per year

A

exempt

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
62
Q

employees - taxable / exempt benefit
eye tests and prescription glasses for employees using VDU

A

exempt

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
63
Q

employees - taxable / exempt benefit
health screening assessment or medical check up provided for an employee by employer (1 per tax year)

A

exempt

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
64
Q

employees - taxable / exempt benefit
cost of officially recommended medical treatment to help employee return to work after period of absence due to ill health or injruy

A

exempt up to £500

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
65
Q

capital gains - chargeable / exempt person
individuals

A

chargeable

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
66
Q

capital gains - chargeable / exempt persons
business partners

A

chargeable

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
67
Q

capital gains - chargeable / exempt persons
trustees

A

chargeable

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
68
Q

capital gains - chargeable / exempt persons
companies

A

chargeable

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
69
Q

capital gains - chargeable / exempt persons
registered charities using gains for charitable purposes

A

exempt

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
70
Q

capital gains - chargeable / exempt persons
friendly socieites

A

exmept

71
Q

capital gains - chargeable / exempt persons
localauthorities

A

exempt

72
Q

capital gains - chargeable / exempt persons
registered pension schemes

A

exempt

73
Q

capital gains - chargeable / exempt persons
investment trusts

A

exempt

74
Q

capital gains - chargeable / exempt persons
approved scientific research associations

A

exempt

75
Q

Chargeable disposals include

A

Sale
gift
receipts of capital sums on surrender of rights of assets
loss/destruction
appropriation of assets as trading stock

76
Q

CGT - Exempt assets/chargeable
legal tender (cash)

A

exempt

77
Q

CGT - Exempt assets/chargeable
motor cars

A

exempt

78
Q

CGT - Exempt assets/chargeable
medals awarded for valour if the person disposing of the medal did not acquire it for money

A

exempt

79
Q

CGT - Exempt assets/chargeable
wasting chattels

A

exempt - except assets used in a business where owner has/could have claimed CA

80
Q

CGT - Exempt assets/chargeable
Chattels which are not wasting o used in business sold at gain for consideration <6,000

A

exempt

81
Q

CGT - Exempt assets/chargeable
gilt edged securities

A

exempt

82
Q

CGT - Exempt assets/chargeable
QCBs

A

exempt

83
Q

CGT - Exempt assets/chargeable
National savings certificates & premium bonds

A

exempt

84
Q

CGT - Exempt assets/chargeable
shares and investments in an ISA

A

exempt

85
Q

Sole traders allow/disallow
Generally

A

disallow

86
Q

Sole traders allow/disallow
Gifts to employees

A

allowable

87
Q

Sole traders allow/disallow
gifts of trade samples

A

allowable

88
Q

Sole traders allow/disallow
gift to customer

A

allowable if have advertisement, not food drink tobacco or cigs and < £50

89
Q

Sole traders allow/disallow
donations and subscriptions - general

A

disallow

90
Q

Sole traders allow/disallow
small donations to local charities

A

allow

91
Q

Sole traders allow/disallow
Trading stock/plant gifted to charities/UK educational establishments

A

Allo

92
Q

Sole traders allow/disallow
Subscription to trade and professional associations

A

Allow

93
Q

Sole traders allow/disallow
fines and penalties

A

disallowable apart from employee parking fines on business

94
Q

Sole traders allow/disallow
interest on late payment of tax

A

disallowable

95
Q

Sole traders allow/disallow
legal and professional fees relating to capital

A

disallow

96
Q

Sole traders allow/disallow
legal costs of renewing short lease < 50 years

A

allos

97
Q

Sole traders allow/disallow
Legal cost of registration of patent/copyright for trade use

A

allow

98
Q

Sole traders allow/disallow
legal costs related to incidental cost of raising LT finance

A

allow

99
Q

Sole traders allow/disallow
irrecoverable VAT related to disallowable expenditure

A

disallow

100
Q

Sole traders allow/disallow
cessation of trade payments in addition to redundancy allowable up to

A

3 * statutory redundancy pay

101
Q

Sole traders allow/disallow
lease cars > 50g/km

A

15% * hire charge

102
Q

Sole traders allow/disallow
Lease cars < 50g/km

A

charge allowable

103
Q

Sole traders allow/disallow
goods taken with nothing recorded

A

add back selling rpice

104
Q

Sole traders allow/disallow
goods taken with cost recorded

A

add back profit

105
Q

Max employee contribution deduction for gift of company car

A

5000

106
Q

Under the cash basis, payments for capital assets are

A

deductible in calculating TTP and capital allowances are not available

107
Q

Cash basis, what items do the same rules as accruals basis apply

A

cars - capital allowances
non-depreciating assets (buildings and land) - disallowed

108
Q

When trader ceases to use capital asset for the purposes of trade, under the cash basis the market value of the asset at that date

A

is treated as a taxable receipt

109
Q

When a trader ceases to trade, under the cash basis, the value of stock and work in progress is treated as

A

a taxable receipt in the final POA

110
Q

If working abroad, how many family flights are exempt from tax

A

2 return trips

111
Q

If working abroad, how many individuals flights re exempt from tax

A

all

112
Q

if working abroad, is accommodation taxable?

A

No

113
Q

Gift relief applies to

A

Shares in unquoted trading company
Assets in personal (5%) company
Personal quoted company shares

114
Q

BADR on assets

A

All the business assets
Trade used assets
Two years of ownership

115
Q

BADR shares

A

Five % of shares
Trading company
Two years of ownership
Worker

116
Q

Investors relief

A

Subscribe to new shares
Trading company
Unquoted/Unlisted
Not a worker of
Issued after March 2016
Three years held

117
Q

Using loopholes in tax legislation is

A

tax avoidance

118
Q

Tax avoidance is

A

operating within the letter but not in spirit of the law and bending rules of the system to gain an advantage parliament did not intend. May be struck down

119
Q

Complex/artificial tax avoidance schemes may be

A

struck down in the courts, the more complex or artificial more likely to be struck down

120
Q

Tax evasion

A

Tax evasion involves deliberate intention to mislead HMRC by either suppressing or falsifying information

121
Q

When is VAT due

A

due date for VAT return and payment is 1 month 7 days after the quarterly return

122
Q

Conflict of interest threatens

A

confidentiality and objectivity

123
Q

Procedures before accepting client

A

carry out customer DD to establish areas of risk
Verify identify of client and directors and keep evidence of identification
obtain professional clearance from previous advisors
prepare appropriate engagement letter explaining scope of responsibilities

124
Q

How does reverse charge system work

A

account for output tax on VAT return as treated as making supply. Same amount recovered as input tax on same VAT return if company makes only taxable supplies

125
Q

Companies
Donations to political parties are

A

Not allowable

126
Q

Sole trader
Expenses incurred prior to trade can be deducted if

A

they were incurred within the 7 years prior to starting business and still own the asset/have benefit of the service

127
Q

VAT
VAT on assets can be recovered if

A

they were purchased within 4 years of starting trade and are still owned

128
Q

VAT on services can be recovered if

A

they were incurred in the 6 months before starting trade

129
Q

GDPR
data breaches must be notified within

A

72 hours

130
Q

GDPR
fines for breaches are subject to maximum of

A

higher of 4% global turnover or 20millioin euros

131
Q

Who monitors compliance with GDPR

A

ICO (Information Commissioners Officer)

132
Q

GDPR
Firms must appoint

A

DPO

133
Q

GDPR
firms handling personal data must

A

notify the CIO so they can be added to a register of data controllers - failure to notify is an offence

134
Q

when can accountants override confidentiality and disclose information

A

if authorised by client/employer
if required by law (legal proceedings/ML)
if there is a professional duty (quality review, inquiry by professional body)

135
Q

Is tax evasion money laundering?

A

Yes and it is criminal

136
Q

Adjusted net income =

A

net income - gross gift aid donations - gross personal pension contributions

137
Q

what assets can be given to charity

A

mv shares, securities, those listed on recognised exchanges, land and buildings - not cash

138
Q

Assets jointly owned are split 50:50 unless election made - what is the exception

A

dividends from shares in family companies - taxed on actual ownership

139
Q

Property income
relief for finance costs is the lower of

A

Finance cost + FC b/f
Property income - losses
Adjusted total income (NSI after losses, reliefs)

140
Q

Employment income
Cash yearnings are received on

A

the earlier of the time the payment is made and when they become entitled to it

141
Q

Sole trader - expenditure incurred prior to trade
Insurance

A

insurance is allowable for the period from being taken out

142
Q

Sole traders get FYA on

A

0% emission cars

143
Q

Sole trader
allow/disallow
legal cost on renewing short term lease (<50years)

A

Allow

144
Q

Sole trader
allow disallow
cost of registering for patent

A

allow

145
Q

Sole trader
allow disallow
copyright for trade use

A

allow

146
Q

Sole trader
allow disallow
incidental cost of raising LT finance

A

allow

147
Q

effective rate of tax

A

average total tax per 1£ income
= IT+NIC / Total income

148
Q

Marginal rate of tax

A

tax on extra £1 of income

149
Q

BPR
Unincorporated business

A

100%

150
Q

BPR
Shares in quoted trading company

A

100%

151
Q

BPR
Shares in quoted trading company where donor had control

A

50%

152
Q

BPR
L&B / P&M owned by an individual and used in partnership/company they control

A

50%

153
Q

Requirements for BPR

A

2 year ownership, unless replacement property or transfers between spouse

154
Q

When no BPR?

A

if business mainly deals in stocks and shares, land and buildings, making or holding investments or if there is a contract for sale in place

155
Q

Which pool
Computers, equipment, shelving, vans and lorries

A

main pool

156
Q

Which pool
moveable office partitioning

A

main pool

157
Q

Which pool
alterations to buildings incidental to installation of P&M

A

main pool

158
Q

Which pool
tables and chairs

A

main pool

159
Q

Which pool
fire regulation expenditure

A

main pool

160
Q

Which pool
integral features (electrical, thermal, cooling)

A

special rate pool

161
Q

Which pool
long life assets

A

special rate pool

162
Q

Long life assets

A

assets when new with an expected economic working life of 25 years or more when total expenditure based on 12 months accounting period > 100,000

163
Q

what is the maximum limit if using loss against other income

A

greater of
50,000
25% total income

164
Q

Loss made in first ?? years of trade applies for what kind of relief

A

opening year relief

165
Q

How does opening years relief work

A

can relieve against Toal income for previous 3 tax years on FIFO basis

166
Q

Restriction on corporation tax carried forward is restricted to

A

£5million§ per 12m
+ 50% of profit above this

167
Q

de-grouping charge definition

A

gain which would have arisen if assets transferred in the six years immediately prior to the disposal of the departing group member had been taxable transfers rather than transfers at nil gain/nil loss

168
Q

degrouping charge will arise if when the departing company leaves either

A

still owns the asset;
owns a replacement asset against which the gain on the first asset has been rolled over

169
Q

How is a degrouping gain treated

A

added to the sales proceeds received on disposal of shares

170
Q

How is a degrouping loss treated

A

added to allowable cost on the disposal of the shares

171
Q

Conflict of interest threatens

A

objectivity

172
Q

ICAEW tax code where conflict

A

client in competition with the firm
financial involvement with a client

173
Q

VAT - restaurants supply

A

services - not goods
single supply, food is incidental to main services of cooking, serving, washing up and ambience

TC (18 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions