INTRO TO EMPLOYMENT INCOME AND BENEFITS Flashcards
general rule for when employees’ tax is dated
earlier of when paid and when entitled to pay (entitled to bonus)
which social security benefits are taxable
job seekers allowance and carers allowance
for car benefit - do you use list price when new or price paid
list price when new regardless of any price paid
how to handle accessories in car for employment benefits
cost of accessory in full if bought when car was new
only accessories over £100 if if bought later on (once car already owned)
what is the maximum capital contribution to car in terms of benefit
5000
how to calculate car benefit
revised list price x pecentage (emissions)
for car employee benefit - what are rules about non-availability deductions
must be off-road for over 30 days to qualify
what is fuel benefit for private motoring
27800 x % emissions
what are rules about empoyee contributions to private fuel benefit
no reduction - but they can be time apportioned
what are rules about employer providing employee with free electricity to charge their car
no benefit - electricity not a fuel
when is job-related accommodation tax free
when necessary for job, for better performance of job, or for security of employee
what are rules for rented accommodation as employee benefit
benefit is higher of rent paid by employer and the annual value
what are rules around lease premium and employee benefit
higher of
premium / length of lease + actual rent paid
annual value
what are rules for owned accommodation as employee benefit
annual value + additional yearly rent
if < 6 y from purchase
(cost - 75,000) x interest rate
cost is original cost plus improvement costs before tax year
if > 6 y from purchase
use market value rather than cost in above formula
what is cash equivalent of benefit
what the employer paid - not what it is necessarily worth
for car benefit round up or down for co2
round down to nearest 5
what is the revised list price for car benefit
for contributions to purchasing the car -
list price + accessories - capital contribution
for ongoing contributions for using the car
revised list price x CO2% - ongoing contributions
how are ‘cheap’ loans treated in terms of employee benefit
aggregate must be over £10,000 throughout the tax year
the average method - average loan outstanding at start and end of y/e times by the average ORI
Apportion by time if no loan at start or end
or use strict method
how is use of an asset by employee treated in terms of benefit
20% x market value when first provided to employee
how is transfer of asset to employee treated (if employee is allowed to keep asset after being lent it)
higher of
- market value when transferred
- market value when first given less contributions for benefit use (20% of value when given)
name of ways to calculate the benefit on cheap loan
average method
and
strict method
how to treat furniture when accommodation is provided?
standard use of asset - 20% of value of furniture.
the accommodation is deemed unfurnished for standard accommodation benefit calculations
how to treat loan written off as employee benefit
full loan amount is benefit
how to calculate taxable benefit for electric vans
no employee benefit for electric vans
