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TC > Income tax > Flashcards

Income tax Flashcards

1
Q

income from ISA

A

exempt

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2
Q

interest on national savings certificates

A

exempt

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3
Q

premium bond winnings

A

exempt

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4
Q

qualifying interest?

A

deducted from total income, when loan is used to…
buy plant or machinery for use in a partnership
buy plant or machinery for employment purposes
buy shares in a close company or employee controlled company
invest in a partnership

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5
Q

what is adjusted net income?

A

income- gross gift aid donations- gross personal pension contributions

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6
Q

child benefit rate?

A

1095 per year for the eldest or only child and 725 for each other child

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7
Q

child benefit tax charge?

A

applies if ani is over 50,00
acts as a tax charge:
1% of child benefit for every 100 between 50,000 and 60,000
at 60,000 the full child benefit is the charge
higher income partner liable for the charge

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8
Q

gifts of assets to charities?

A

deduction given against total income,

amount deductible is the mv of the asset at the date of the gift

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9
Q

dividends from jointly owned shares in a family company…

A

taxed according to actual ownership

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10
Q

basic rule on jointly owned assets…

A

joint income divded equally between them- spouse and civil partners deemed to own asset in equal proportions

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11
Q

fixed rate deductions for motor bikes?

A

24p

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12
Q

under cash basis (property income) do we claim capital allowances on vans and motorbikes?

A

NONONO- fuly deductible

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13
Q

tax reductor for mortgage interest?

A

20% of lower of
the interest
pi
income that exceeds pa (excluding savings and div income)

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14
Q

rent a room relief- how much is the relief if there are 4 people?

A

ALWAYS half of 7500 if more than 2 people

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15
Q

maximum gross pension contribution attracting tax relief?

A

Higher of
relevant earnings
3600

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16
Q

what is ‘relevant earnings’

A

trading and employment income

17
Q

what is included in the annual allowance of 40,000

A

employee and employer pension contirbutions

18
Q

annual allowance can be carried forward from…

A

the three preceding tax years

19
Q

pension lifetime allowance

A

1073100

20
Q

directors earning rules…

A
  • date they are credited in companies records or accounts
  • the end of the period of account if earnings are determined before the period ends
  • date the earnings are determined if they are not determined until after the end of the period of account
21
Q

expenses connected with living accom if job related are limited to…

A

10% of employment income (excluding any expenses related to the accomodation)

22
Q

limit on capital contirbution towards cars

A

5000

23
Q

flat rate for zero emission vans

A

2792

24
Q

if benefits are not taxed through the payroll…

A

must be paid by employee by 6th july following end of ty

25
Q

home to work travel?

A

deduction from employment income for site based employees

26
Q

when tax payers home is his work location…

A

travel from there to another work location is allowable

27
Q

where an employee is at a temporary workplace (less than 2 years)…

A

travel from home to the temporary workplace is allowable

28
Q

special entertaining allowance…

A

deemed to be income BUT can deduct the actual expense

29
Q

roundsum allowance

A

no deduction allowed for entertaining

30
Q

flat rate scheme for bikes?

A

20p

31
Q

assets transferred to employee..

A

taxable benefit is the greater of…
mv of asset when first provided less amounts already taxed
current market value

32
Q

car, van or bike transferred to employee..

A

current market value less any contirbutions made by employee

33
Q

pension advice up to 500 per year

A

exempt

34
Q

awards of up to 5000 on a staff suggestion scheme

A

exempt

35
Q

what payment toward working from home is exempt without needing further evidence?

A

6

36
Q

perosnal incidental expenses when abroad?

A

£5 per night in the UK, £10 abroad

37
Q

strange rules with optional renumeration arrangement?

A

taxable value of benefit fixed at hgiher of taxable val and the value of cash sacrificied (includes benefits which are normally exempt)

38
Q

what is exempt from optional renumeration arrangement?

A
  • pension savings
  • employer provided pension advice
  • childcare provision
  • cycle to work
  • ultra low emission cars

TC (9 decks)

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