Week 3: Income Tax & NI Flashcards
1
Q
Personal Allowance
A
- The amount of income an individual can receive tax free in a tax year, before the remainder of their income becomes liable to income tax
2
Q
Evasion
A
- Deliberate omission from tax return or false information
3
Q
Avoidance
A
- Tax loopholed not closed by HMRC
4
Q
Mitigation
A
- Tax savings encouraged by government
- ISAS
5
Q
Capital Gains Tax:
Tax free gains
A
- ISA or pension
- Main home
- Private cars
- Personal possessions
- Betting, lottery winnings, premium bond prizes
- Gifts to spouse
- Gifts to charity
6
Q
P60
A
Summary of gross pay, total IT and NI deducted in tax year
7
Q
P45
A
Gross pay, IT and NI to date leaving - post to new employer
8
Q
Number of benefits exempt from income tax (5)
A
- Pension contributions made in employees behalf
- Subsidised meals in staff canteen
- Subsidised workplace gym
- Subsidised workplace nursery
- Interest free loan <10K
