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Tax And NIC Flashcards

1
Q

Payments above the recommended mileage rate are treated how?

A

Not taxable but entered on P11d where they will be subject to Class 1 NIC (not 1a !!)

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2
Q

Is a PAYE scheme required if the employees are under the LEL?

A

No

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3
Q

If an employer makes no payments to employees in the month does he still need to submit a FPS?

A

No , you submit and EPS instead

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4
Q

How soon does an EPS need to be filed ?

A

14 days after the end of the tax month

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5
Q

What is the deadline for payment of PAYE?

A

17 days after the end of the tax month if paying electronically.

If not paid electronically it’s due by the 19th

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6
Q

Who must pay PAYE electronically?

A

If you have more than 250 employees

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7
Q

When can a business pay PAYE quarterly?

A

If the average monthly PAYE bill is less than £1,500

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8
Q

What is the deadline for submitting form P11d?

A

6 July following the end of the tax year

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9
Q

What form is required when an employee is first provided with a car?

A

P46

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10
Q

What is the deadline for form P46?

A

28 days from the end of the quarter when the car was provided

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11
Q

What are the penalties for late payment of PAYE?

A

The first payment late is not counted if less than 6 months late .

The next three defaults - 1% of PAYE due

Defaults 4 to 6 - 2%

Defaults 7 to 9 - 3%

Defaults 10 onwards - 4%

If more than 6 months late penalty is 5%

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12
Q

What are the penalties for late submission of FPS or EPS ?

A

FPS or eps

First month no penalty

< 9 employees - £100
<49 employees - £200
<249 employees - £300
250+ employees - £400

More than 3 months late

5% of the tax and nic

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13
Q

Desribe the different types of PAYE income?

A

Employment Income

Pension Income under PAYE

SSP & SMP

Cash payments made by employers to employees

Payments in the form of readily convertible assets

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14
Q

An employee has benefits of £13,215. What is his tax code?

A

K135.

11,850 - 13215 = 1365 = K136 - 1 = K135

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15
Q

What is the trick when dealing with tax underpayments in tax codes?

A

Gross it up by employees tax rate - eg 100/80 if 20%

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16
Q

Which of the following are PAYE income?

a. Performance related bonus
b. Statutory sick pay
c. Company car
d. Non taxable business expenses
e. Bonus paid in silver bullion

A

a, b, e

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17
Q

When are PAYE penalty notices issued?

A

Quarterly - Jul Oct Jan Apr

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18
Q

When might a PAYE penalty not be charged?

A

If there is reasonable excuse

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19
Q

What is the penalty for late P11d?

A

£300 then up to £60 per day

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20
Q

What is the deadline for filing an FPS?

A

When or before payments are made to an employee

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21
Q

What does FPS stand for?

A

Full payment submission

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22
Q

What does EPS stand for ?

A

Employer payment summary

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23
Q

What is the deadline for providing a P60 to employees?

24
Q

What is the deadline for providing a P11d to employees?

25
What constitutes earnings for Class 1 purposes?
- Any cash payment by an employer to an employee - Settling employees personal liability - eg a bill - Non cash payments that can be surrendered for cash - eg premium bonds - readily convertible assets - eg shares that can be traded on the stock exchange
26
Are mileage payments subject to class 1?
Only if paid over 45p per mile.
27
If an employee is paid 50p per mile for 15,000 miles, how much will be subject to NI?
£750 - 5p per mile. Dont get mixed up with what is allowable for tax purposes.
28
Who doesnt pay Class 1?
Pensioners
29
Are company car benefits subject to NI?
No
30
Does a company pay Class 1 secondary contributions for Under 21s?
Yes, but only once earnings are over the USL.
31
Earnings or not for Class 1 purposes : Interest free loan?
No
32
Earnings or not for Class 1 purposes: Premium bonds
yes
33
Earnings or not for Class 1 purposes - £20,000 of gold bullion
Yes
34
Earnings or not for Class 1 purposes: John lewis store voucher
Yes
35
Earnings or not for Class 1 purposes: Home telephone bill
Yes
36
Earnings or not for Class 1 purposes: Reimbursed business expenses
No
37
If a benefit is exempt from income tax, is it exempt from NI too?
Yes
38
What is Class 1B NI charged on?
Earnings under a PAYE Settlment agreement (PSA)
39
Yes or no - Class 1A on Company car benefit?
Yes
40
Yes or no - Class 1A on Fuel benefit?
Yes
41
Yes or no - Class 1A on Living accommodation benefit?
Yes
42
Yes or no - Class 1A on beneficial loans benefit?
Yes
43
Yes or no - Class 1A on the excess of removal expenses above £8,000?
Yes
44
Yes or no - Class 1A on asset benefit?
Yes
45
Is an employee subject to Class 1 A on a company car benefit?
No - employer is subject to Class1A
46
Are Class1 secondary contributions chargeable on car benefit?
No
47
A xmas party (£200 per head) cost an employer £20,000 plus £9.150 tax - what is the total as far as Class 1B is concerned?
£29,180 @ 13.8%
48
What is the penalty for unpaid Class 1A & 1B?
5% of unpaid NIC if more than 30 days. Further 5% if more than 5 months and again at 11 months.
49
What is the penalty for late submission of P11d?
£100 per month or part month for each group of 50 employees
50
If a P11d is filed on 10th September, how many months penalty ?
3 months (2 full months and then the part month)
51
If an employer paid £3,000 for an employee under a PSA , what would the tax be?
£750 - £3000/80 x 20
52
How much is the apprtentice levy?
0.5%
53
If employees earnings for class 1 were £245,000 in month 1, what is the levy?
£nil as the £1,225 is covered by 1/12th of the levy allowance
54
If employees earnings for class 1 were £245,000 in month 1, and £265,000 in month 2, what is the levy for month 2?
£50 Cumulative £510,000 x 0.5% less 2/12th levy allowance
55
Store vouchers - are they taxable?
Subject to Class 1 but NOT paye.
56
What is the maximum amount that can be deducted through a payroll deduction scheme such as give as you earn?
No minimum or maximum
57
How does GAYE affect tax and ni?
Salary reduced for PAYE but not NI

Tax And NIC (1 decks)

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