PAYE (1)

Question 1

What is time apportioned?

Answer 1

Time apportion the benefit if it is only available for part of year by multiplying by number of months

Question 2

What are employee contributions?

Answer 2

Deductible from taxable benefit if any contributions made on or before 6 July following end of tax year, with exception of fuel benefit

Question 3

What if an employee is provided with job-related accommodation?

Answer 3

Not taxed on it

Question 4

When is an accommodation job related?

Answer 4

Provided for security reasons

Necessary for proper performance of duties

Customary and ensures better performance of duties

Question 5

If accomodation is not job related>

Answer 5

A taxable benefit arises

Question 6

What is the taxable value of accommodation provided to an employee?

Answer 6

Rent that would have been payable if the premises had been let at their annual value

Question 7

Greater of for additional benefit if property cost over £75000?

Answer 7

Annual value
Rent paid by employer

Question 8

What is the official rate of interest for accommodation?

Answer 8

2.25%

Question 9

What is cost used in the accommodation calculation

Answer 9

Cost of purchase + any improvements to property made before the start of the tax year

Question 10

When to use market value instead of cost in accommodation?

Answer 10

Property is first made available to employee more than six years after employer purchased it

Question 11

Any contribution paid by the employee in accommodation?

Answer 11

Can be deducted in arriving at the taxable beneift

Question 12

When does a benefit on accommodation living expenses arise on employees?

Answer 12

If living expenses are paid for by the employer

Question 13

Job-related accommodation taxable benefit?

Answer 13

Taxable benefit = cost to employer

But can’t exceed 10% of employee’s net earnings

Question 14

Not job-related accommodation taxable benefit?

Answer 14

Taxable beneift = cost to employer