Topic 5 Flashcards
State benefits and HMRC tax credits
Which form(s) of Employment and Support Allowance is/are means tested?
A. New style only
B. Income based only
C. Both
D. Neither
B. Income-based ESA is means-tested; new style ESA is based on National Insurance contribution record so is not means-tested.
Jane and John have two young daughters and claim Child Benefit.
John earns £48,000 per year and Jane earns £57,000 per year. If the threshold is £50,000, they will:
a) become ineligible for Child Benefit, as one of their incomes is over the threshold.
b) not be liable to an income tax charge as one of their incomes is still under the threshold.
c) be liable to an income tax charge as one of their incomes is over the threshold.
d) be entitled to an increased amount of Child Benefit as one of their incomes is under the threshold.
c) Tax is charged through self-assessment for any income above the threshold, offsetting the amount of Child Benefit received.
A major difference between the basic state pension and the new
state pension is:
a) The basic state pension is paid at a later age than the new state pension.
b) The new state pension is paid at a later age than the basic state pension.
c) The new state pension has no facility for an individual to claim a state pension based on National Insurance contributions paid by the spouse or civil partner.
d) Lower levels of National Insurance contributions are required to claim a full new state pension.
C.
With the basic state pension it is possible to claim a Category B pension based on the NICs of a spouse or civil partner, but this is not possible with the new state pension.
Which of the following benefits has not been replaced by Universal Credit?
A. Income related employment and support allowance
B. Income Support
C. Statutory Sick Pay
D. Housing Benefit
C. Statutory Sick Pay
Contribution based Job Seekers Allowance:
A. May be reduced if the applicant has significant savings.
B. Is payable for a maximum of six months.
C. Is paid at a variable rate, dependent on contributions made.
D. Is a tax free benefit
B. Is payable for a maximum of six months.
Lilian is 75 and in poor health. Her daughter Alison looks after her for several hours each day.
Subject to meeting the eligibility criteria, Alison will receive:
a) Carer’s Allowance.
b) Attendance Allowance.
c) Personal Independence Payment.
d) Disability Living Allowance.
A. Carers allowance
Statutory Maternity Pay is payable for a maximum of:
A. 12 weeks
B. 26 weeks
C. 39 weeks
D. 52 weeks
C. 39 weeks
George is 75 and, having been self-employed all his working life, retired at the age of 66. He could potentially be in receipt of which state retirement benefits?
a) Basic state pension, pension credit and savings credit only.
b) Basic state pension and pension credit only.
c) Basic state pension only.
d) Basic state pension, pension credit, savings credit and an additional state pension.
a) Basic state pension, pension credit and savings credit only.
Assuming a satisfactory National Insurance contribution record, George will receive the basic state pension. Depending on his retirement income, he could also qualify for Pension Credit and Savings Credit. As he was self-employed, he will not have built up entitlement to any additional state pension.
Which of the following state benefits is tax free?
a) Contribution-based Employment and Support Allowance.
b) Carer’s Allowance.
c) Disability Living Allowance.
d) Statutory Sick Pay.
c) Disability Living Allowance.
Les is receiving Working Tax Credits and has four children, Lia, aged 14, Leo, aged 18 and in the early stages of an apprenticeship, Livvy, aged 19 and in her first year at university, and Lenny, aged 20 and in his second year at university. For how many of his children can Les claim Child Tax Credit?
A. 1
B. 2
C. 3
D. 4
c. 3
Payable to those under 20 in education and training.
According to government statistics, in the previous 12 months average earnings increased by 4.3% and inflation increased by 3.2%. This means that both the basic state pension and the new state pension will increase by:
A. 2.5%
B. 3.2%
C. 4.3%
D. 5%
C. 4.3%
In relation to Support for Mortgage Interest (SMI), the loan:
a) must be repaid within 24 months from the end of a claim.
b) payments cover capital and interest on the mortgage.
c) is secured by a first charge on the property.
d) payments are made direct to the lender.
d) payments are made direct to the lender.
Kyle has just started work at the age of 18. Which of the following is true in relation to his state retirement benefits? He must be credited with:
a) 35 years’ National Insurance contributions to receive the full new state pension.
b) 30 years’ National Insurance contributions to receive the full basic state pension.
c) at least 1 years’ National Insurance contributions to receive any new state pension.
d) at least 15 years’ National Insurance contributions to receive any new state pension.
a) 35 years’ National Insurance contributions to receive the full new state pension.
Statutory Maternity Pay is taxable and subject to National Insurance contributions.
True or False?
True
Statutory Sick Pay is paid to employees who are off work due to sickness for four days or longer.
True or False?
True
