PT27 Treatment of Employment Income Quiz

Question 1

Cash payments including salary, bonuses

Answer 1

PAYE & class 1

Question 2

Termination payments taxed under ITEPA 2003, s.62 (contractual payment for services) and PENP

Answer 2

PAYE & class 1

Question 3

Termination payments taxed under ITEPA 2003,
s.401 (ex gratia) (excluding PENP) - first £30,000

Answer 3

None

Question 4

Termination payments taxed under ITEPA 2003,
s.401 (ex gratia) (excluding PENP) - excess over £30,000

Answer 4

PAYE & class 1A

Question 5

Payment/reimbursement of genuine business
expenses

Answer 5

None

Question 6

Private expenses (including non-qualifying relocation
payments) - Reimbursed to Employee

Answer 6

PAYE & class 1

Question 7

Private expenses (including non-qualifying relocation
payments) - Paid to supplier but arranged by employee (settlement of personal liability)

Answer 7

Only class 1 and it goes on a P11D

Question 8

Private expenses (including non-qualifying relocation
payments) - Paid to supplier and arranged by employer

Answer 8

Class 1A and it goes on a P11D

Question 9

Round sum allowances (unless it does no more than reimburse actual expenditure)

Answer 9

PAYE & class 1

Question 10

Readily convertible assets (plc shares)

Answer 10

PAYE & class 1

Question 11

cash vouchers

Answer 11

PAYE & class 1

Question 12

non-cash vouchers

Answer 12

Class 1 only and goes on P11D

Question 13

Asset surrenderable for cash (premium bonds)

Answer 13

PAYE & class 1

Question 14

qualifying relocation payments in excess of £8,000

Answer 14

Class 1A and P11D

Question 15

assets made available for private use

Answer 15

Class 1A and P11D

Question 16

living accommodation (not job-related)

Answer 16

Class 1A and P11D

Question 17

private medical insurance

Answer 17

Class 1A and P11D

Question 18

assets transferred to employee

Answer 18

Class 1A and P11D

Question 19

car and fuel benefit

Answer 19

Class 1A and P11D

Question 20

van and fuel benefit

Answer 20

Class 1A and P11D

Question 21

loan benefit (where more than £10,000)

Answer 21

Class 1A and P11D

Question 22

loan written of

Answer 22

Class 1 and P11D

Question 23

Reimbursement of incidental expenses when
working away from home within prescribed limits (£5UK £10Overseas)

Answer 23

None

Question 24

Reimbursement of incidental expenses when working away from home exceeding prescribed limits

Answer 24

Payroll, P11D, Class 1 (double reported but not double taxed)

Question 25

Mileage allowance payments for use of own
car not exceeding authorised amount

Answer 25

None

Question 26

Mileage allowance payments for use of own
car exceeding authorised amount

Answer 26

Payroll, class 1 (P11D only if not able to do via payroll)