ToEI

Question 1

What is the treatment of employment income

Cash Payments including salary, bonusses

PAYE / CLASS 1 (primary/secondary) / P11D / CLASS 1A

Answer 1

PAYE
CLASS 1 primary
CLASS 1 secondary

Question 2

What is the treatment of employment income

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

PAYE / CLASS 1 (primary/secondary) / P11D / CLASS 1A

Answer 2

PAYE
CLASS 1 primary
CLASS 1 secondary

Question 3

What is the treatment of employment income

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

PAYE / CLASS 1 (primary/secondary) / P11D / CLASS 1A

Answer 3

NONE

OF PAYE / CLASS 1 (primary/secondary) / P11D / CLASS 1A

Question 4

What is the treatment of employment income

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

PAYE INCOME / CLASS 1 (primary/secondary) / P11D / CLASS 1A

Answer 4

PAYE INCOME
CLASS 1A

Question 5

What is the treatment of employment income

Payment/reimbursement of genuine business expenses

PAYE / CLASS 1 (primary/secondary) / P11D / CLASS 1A

Answer 5

NONE

Question 6

What is the treatment of employment income

Private expenses (including non-qualifying relocation payments):
* reimbursed to employee

PAYE / CLASS 1 (primary/secondary) / P11D / CLASS 1A

Answer 6

PAYE Income
Class 1

Question 7

What is the treatment of employment income

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

PAYE / CLASS 1 (primary/secondary) / P11D / CLASS 1A

Answer 7

Class 1
P11D

Question 8

What is the treatment of employment income

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

PAYE / CLASS 1 (primary/secondary) / P11D / CLASS 1A

Answer 8

P11d
Class 1A

Question 9

What is the treatment of employment income

Round sum allowances

PAYE / CLASS 1 (primary/secondary) / P11D / CLASS 1A

Answer 9

PAYE Income
- unless it does no more than reimburse business expenses, in which case exempt income

CLASS 1
- unless exempt income or a specific and distinct business expense identified

Question 10

What is the treatment of employment income

Readily convertible assets (plc shares)

PAYE / CLASS 1 (primary/secondary) / P11D / CLASS 1A

Answer 10

PAYE Income
Class 1 (primary / secondary)

Question 11

What is the treatment of employment income

CASH VOUCHER

PAYE / CLASS 1 (primary/secondary) / P11D / CLASS 1A

Answer 11

PAYE Income
Class 1

Question 12

What is the treatment of employment income

NON-CASH VOUCHER

PAYE / CLASS 1 (primary/secondary) / P11D / CLASS 1A

Answer 12

NO PAYE INCOME - unless exchangable for readily convertible asset

CLASS 1 - (ignore exempt amount of childcare vouchers)

P11D - (only excess over exempt amount of childcare vouchers)

Question 13

What is the treatment of employment income

Asset surrenderable for cash (premium bonds)

PAYE / CLASS 1 (primary/secondary) / P11D / CLASS 1A

Answer 13

PAYE Income
Class 1

Question 14

What is the treatment of employment income

qualifying relocation payments in excess of £8,000

PAYE / CLASS 1 (primary/secondary) / P11D / CLASS 1A

Answer 14

P11d - excess
Class 1A - excess

Question 15

What is the treatment of employment income

assets made available for private use

PAYE / CLASS 1 (primary/secondary) / P11D / CLASS 1A

Answer 15

P11d
Class 1A

Question 16

What is the treatment of employment income

living accommodation (not job-related)

PAYE / CLASS 1 (primary/secondary) / P11D / CLASS 1A

Answer 16

P11d
Class 1A

Question 17

What is the treatment of employment income

private medical insurance

PAYE / CLASS 1 (primary/secondary) / P11D / CLASS 1A

Answer 17

P11d
Class 1A

Question 18

What is the treatment of employment income

assets transferred to employee

PAYE / CLASS 1 (primary/secondary) / P11D / CLASS 1A

Answer 18

P11d
Class 1A

Question 19

What is the treatment of employment income

car and fuel benefit
van and fuel benefit

PAYE / CLASS 1 (primary/secondary) / P11D / CLASS 1A

Answer 19

P11d - Class 1A
P11d - Class 1A

Question 20

What is the treatment of employment income

loan benefit (where more than £10,000)
loan written off
loan to pay for shares in close company

PAYE / CLASS 1 (primary/secondary) / P11D / CLASS 1A

Answer 20

loan benefit - P11D & Class1A
loan writeoff - Class1 & P11d
loan to buy shares in close company - excempt (given up to £15k & not material interest)

Question 21

What is the treatment of employment income

Reimbursement of incidental expenses when working away from home;

within prescribed limits (£5 UK/£10 OS)

PAYE / CLASS 1 (primary/secondary) / P11D / CLASS 1A

Answer 21

NONE

Question 22

What is the treatment of employment income

Reimbursement of incidental expenses when working away from home:

exceeding prescribed limits

PAYE / CLASS 1 (primary/secondary) / P11D / CLASS 1A

Answer 22

PAYE Income
Class1
P11d *

• A reimbursement of incidental expenses is reported on Form P11D, but the amount that has been included in payroll is also reported so that there is no double taxation.

Question 23

What is the treatment of employment income

Mileage allowance payments for use of own car

exceeding authorised amount

PAYE / CLASS 1 (primary/secondary) / P11D / CLASS 1A

Answer 23

PAYE Income - excess (45p/25p)
Class 1 - excess 45p only

If unable to tax via PAYE - P11D applies

Question 24

When Benefit reportable under P11D doesn’t have to be included in P11d

Answer 24

Where an employer has registered with HMRC to include a benefit in payroll.

it should NOT be reported on form P11d