Revision Flashcards
When is the tax year for an individual
6th April to the 5th April of the following year
when can income tax be paid for non-PAYE individuals
to equal payments can be made on the 31st January and the 31st July. anything left over must be paid by the 31st January of the following year.
Late payment penalties
Anything paid within 30-days will not be subject to a late payment penalty. anything after 30 days will be subject to a 5% penalty on the outstanding amount and will increase to another 5% after 6 months
When is personal allowance restricted
Income over £100,000
How is gift aid treated
Gift is calculated up to its Gross amount and then added to the basic rate band as additional tax relief and then the amount of tax paid is deducted at the end
how is Property income treated
If it is less than £1,000 then it is not subject to any tax. if you have earned over this amount than you can choose to deduct the allowance or to deduct the expenses.
when is capital expenses for property income tax deductible
If it is plant and machine that is for the repair, maintenance and management of the let property.
How are losses treated for property income
The income for the year is set to £nil and the loss is carried forward and used against the first available property income
What is the rent a room relief
If you are renting a room in your own home then any gross rent up to £7,500 is exempt from income tax.
when is employment incomes assed as received
It is either the earliest of when the employee was entitled to receive the income or when it was actually received.
employees using their own vehicle for employment
considering the journey meets certain requirements then for the first 10,000 miles they can received 45p per mile and 25p after that. this can not be for travel from home to place of work and must be out with the normal travel and strictly for business.
how are entertaining expenses treated
entertaining expenses are only not liable to tax if they are used specially for the purpose of entertaining, this does not cover general allowances.
what is considered a tribal benefit
any benefit that is less than or equal to £50.
How is housing benefit treated
firstly the house is based on its annual rate, then you need to considered if any running cost have be made for the house and finally you must Calculate a figure for the house which is. The cost of the property - £75,000 x 2% all together this gives you the total benefit of the house but you finally need to remove any contributions made to the financing.
how is car benefit treated
firstly you need to calculate the car percentage which is based on the g/km which if over 75 is rounded down to the nearest 5. this will give you a percentage that will that you have to apply to the list car price when new. for the fuel benefit you need to Calculate the percentage to a prescribed amount - £25,300
