Income tax Flashcards
income from ISA
exempt
interest on national savings certificates
exempt
premium bond winnings
exempt
qualifying interest?
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
what is adjusted net income?
income- gross gift aid donations- gross personal pension contributions
child benefit rate?
1095 per year for the eldest or only child and 725 for each other child
child benefit tax charge?
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
gifts of assets to charities?
deduction given against total income,
amount deductible is the mv of the asset at the date of the gift
dividends from jointly owned shares in a family company…
taxed according to actual ownership
basic rule on jointly owned assets…
joint income divded equally between them- spouse and civil partners deemed to own asset in equal proportions
fixed rate deductions for motor bikes?
24p
under cash basis (property income) do we claim capital allowances on vans and motorbikes?
NONONO- fuly deductible
tax reductor for mortgage interest?
20% of lower of
the interest
pi
income that exceeds pa (excluding savings and div income)
rent a room relief- how much is the relief if there are 4 people?
ALWAYS half of 7500 if more than 2 people
maximum gross pension contribution attracting tax relief?
Higher of
relevant earnings
3600
what is ‘relevant earnings’
trading and employment income
what is included in the annual allowance of 40,000
employee and employer pension contirbutions
annual allowance can be carried forward from…
the three preceding tax years
pension lifetime allowance
1073100
directors earning rules…
- 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
expenses connected with living accom if job related are limited to…
10% of employment income (excluding any expenses related to the accomodation)
limit on capital contirbution towards cars
5000
flat rate for zero emission vans
2792
if benefits are not taxed through the payroll…
must be paid by employee by 6th july following end of ty
home to work travel?
deduction from employment income for site based employees
when tax payers home is his work location…
travel from there to another work location is allowable
where an employee is at a temporary workplace (less than 2 years)…
travel from home to the temporary workplace is allowable
special entertaining allowance…
deemed to be income BUT can deduct the actual expense
roundsum allowance
no deduction allowed for entertaining
flat rate scheme for bikes?
20p
assets transferred to employee..
taxable benefit is the greater of…
mv of asset when first provided less amounts already taxed
current market value
car, van or bike transferred to employee..
current market value less any contirbutions made by employee
pension advice up to 500 per year
exempt
awards of up to 5000 on a staff suggestion scheme
exempt
what payment toward working from home is exempt without needing further evidence?
6
perosnal incidental expenses when abroad?
£5 per night in the UK, £10 abroad
strange rules with optional renumeration arrangement?
taxable value of benefit fixed at hgiher of taxable val and the value of cash sacrificied (includes benefits which are normally exempt)
what is exempt from optional renumeration arrangement?
- pension savings
- employer provided pension advice
- childcare provision
- cycle to work
- ultra low emission cars
