Question 5

Question 1

What is the mileage rate for IT?

Answer 1

45p up to 10k miles then 25p onwards for a car

Question 2

What is the mileage rate for NIC?

Answer 2

45p for all miles on a car

Question 3

Are employer contributions into personal/occupational pensions exempt?

Answer 3

Yes

Question 4

What is the cap on gross pension contribution by employees?

Answer 4

Higher of £3,600 or relevant earnings (employment income & trading income)

Question 5

How is tax relief given from an ee putting money into an occupational pension?

Answer 5

Deduct from employment income

Question 6

How is tax relief given from an ee putting money into a personal pension?

Answer 6

Gross up (*100/80), Extend bands, deduct from adjusted net income.

Question 7

What is adjusted net income?

Answer 7

Net income - Gross personal pension contributions - gross gift aid

Question 8

What does Adjusted net income effect?

Answer 8

It affects child benefit charge and when you start tapering the personal allowance.

Question 9

How much is the pension annual allowance?

Answer 9

£60,000 + previous 3 years bfwd

Question 10

Up to how much is exempt for an employee’s relocation?

Answer 10

£8,000 relocation allowance

Question 11

Purchase of an employer asset?

Answer 11

Greater of MV at first use or MV less tax paid from private use

Question 12

What is the maximum that you can contribute to a work car?

Answer 12

£5000

Question 13

What amount of trade income is exempt?

Answer 13

Trading allowance < £1000

Question 14

How to calculate DTR ?

Answer 14

Do a calculation with all the WW income then do again with just UK Income, the difference between the both is the UK tax on foreign income, which can be used to do DTR.

Question 15

DTR is the lower of?

Answer 15

UK tax on overseas income/gain, and
Foreign tax suffered.

Question 16

How to offset trading losses against gains?

Answer 16

Firstly, offset against all possible total income, then if remaining you can offset against gains for an individual.

Question 17

What can you do with a trading loss as an individual?

Answer 17

Offset against PY total income and/or CY total income and/or carry forward.

Question 18

How does early loss relief work?

Answer 18

If you make a loss in the first four tax years you can offset against total income in previous 3 years FIFO

Question 19

How does terminal loss relief work

Answer 19

Loss in final 12 months of trading offset against trading profits in previous 3 years LIFO from same trade.

Question 20

What profits can carry forward losses be used on?

Answer 20

Trading profits

Question 21

What is the max loss that can be used against non-trade income?

Answer 21

Higher of:
£50k, &
25% of total income

Question 22

What pre-trade expenses can be deducted?

Answer 22

If incurred <7years before start of trade

Question 23

When do you use the cash basis when calculating property income?

Answer 23

If it is less than £150,000

Question 24

What to do with mortgage interest?

Answer 24

You get a 20% relief against tax payable

Question 25

Are there capital allowances for P&M other than cars when using cash basis?

Answer 25

No, just deduct cost and add proceeds

Question 26

For lease cars, at what emission point is there a disallowed amount of 15%?

Answer 26

> 50 g/km

Question 27

What is the maximum interest deduction when using the cash basis?

Answer 27

£500

Question 28

What is the only loss relief available when using the cash basis?

Answer 28

C/fwd only

Question 29

What is the marginal rate?

Answer 29

20%, 40% or 45% + Class 1 Primary NIC 2%/8%

Question 30

What is effective rate?

Answer 30

Tax liability / Total income

Question 31

On fuel benefit, when is it fully exempt and is not a taxable benefit?

Answer 31

If you repay all of the fuel benefit from the employer.