Taxable and exempt benefits

Question 1

General rule

Answer 1

Normally just the cost to employer - this will go in NSI

Pro rate benefit = n/12

Deduct employee contribution to benefits if paid by 6 July

Personal pensions are not deducted from NSI it only extends tax bands (but is also deducted from ANI when calc PA adjustment)

Question 2

Accommodation

Answer 2

Job related - exempt (priest)

Not job related - higher of rent paid or annual value
An additional charge if over 75K = 2.25% x (cost-75K)

Question 3

Accommodation living expenses

Answer 3

Job related - cost to employer limited to 10% of net earnings

Not job related - cost to employer

Question 4

Use of assets

Answer 4

20% of market value (not for cars or phones)

Gifts = higher of MV when given or MV when first used less amounts already assessed

Question 5

Cars

Answer 5

Co2 % X list price

Max % is 37%
Disel add 4% but not above 37%

Deduct capital contribution from list price (max is 5K)

Question 6

Fuel for private

Answer 6

£24,500 X Co2 %

Question 7

Exempt benefits

Answer 7

Canteen meals, workplace childcare, employers pension contribution, mobile phone, sports/rec facility, £150 per person annual parties, £6 for employees working from home(no matter how many days per week, min 1), Trivial benefit of £50 or less (cant be cash or cash vouchers).

Question 8

Loan

Answer 8

Anything over 10K and interest needs to be a min of 2.25%
Lower of average and strict method

Average= ((Start of period + end of period)/2 ) * 2.25%
Strict method= Loan amount * months that was balance of loan * 2.25