Income Tax Flashcards
1
Q
Gift aid rule
A
Extends basic rate band by gift aid x 100/80
2
Q
Accommodation benefits
A
Annual value+ expensive living (cost-75000)x 3%
Job related- 10% of net employment income
3
Q
Ancillary service
A
Add all unless repairs
4
Q
Furniture and 2nd phone
A
20% market value
5
Q
Badges of trade
A
Subject
Frequency
Length of ownership
Motive
6
Q
Format for trading income
A
Net profit
Add back expenditure not deductible for tax purposes
Less
Non trading income
Expenditure deductible for tax purposes
Tax adjusted trading income
7
Q
Disallowable/ add back expenditure
A
Drawings Provisions Depreciation Training if non trade Improvements Entertaining clients Legal non trade
8
Q
Relocation allowance exemption
A
8000
9
Q
Furniture purchase
A
Higher of
Market value- purchase price
Or Cost less benefit in kind charged for use Less purchase price And
