PAYE System (Essential Reading)

Question 1

When is the interest benefit not taxable?

Answer 1

If the total of all non-qualifying loans to the employee did not exceed £10000 at any time in the tax year

Question 2

What is meant by a qualifying loan?

Answer 2

All or part of any interest paid would qualify for tax relief

Question 3

When the £10000 threshold is exceeded in a deminimis test?

Answer 3

A benefit arises on interest on whole loan, not just the excess of the loan over £10000

Question 4

When does notaxable benefit arise for a qualifying loan?

Answer 4

If the whole of interest payable on a qualifying loan is eligble for tax relief

Question 5

If the interest is only partly eligible for tax relief?

Answer 5

Then employee is treated as paying interest equal to those earnings

Question 6

What are loans generally?

Answer 6

Non-qualifying unless otherwise stated

Question 7

When an individual has spend one or more nights from home?

Answer 7

Employer may reimburse expenses on items incidential to their absence.

Question 8

When are such incidental expenses exempt (one or more nights)? (overnight)

Answer 8

Expenses of travelling to each place where individual stays overnight

Question 9

When are such incidental expenses exempt (one or more nights)? (Total)

Answer 9

Total incidental expenses which are exempt are <=£5 for each night spent wholly in UK and £10 for each other night

Question 10

Exempt benefits (entertainment)

Answer 10

Entertainment provided to employees by genuine third parties

Question 11

Exempt benefits (gifts)

Answer 11

Gifts of goods from third parties if total cost of all gifts by the same donor to same employee in tax year is £250 or less

Question 12

Exempt benefits (non-cash awards)

Answer 12

Non-cash awards for long service of period of service was at least 20 years

Question 13

If an award exceeds £5000?

Answer 13

Excess is always taxable

Question 14

Exempt benefits (workplace)

Answer 14

Workplace conditions

Question 15

Exempt benefits (sporting)

Answer 15

Sporting or recretational facilities available to employees generally

Question 16

Exempt benefits (vouchers)

Answer 16

Vouckers only exchangeable for specific sporting or recreational facilities

Question 17

Exempt benefits (assets)

Answer 17

Assets or services used in performing the duties of emplyment provided any private use of their item concerned is insignificant

Question 18

Exempt benefits (welfare)

Answer 18

Welfare counselling

Question 19

Exempt benefits (bicycles)

Answer 19

Bicycles or cycling safet equipment provided to enable employees to get to and from work

Question 20

Exempt benefits (parking)

Answer 20

Workplace working

Question 21

Exempt benefits (£15480)

Answer 21

Up to £15480 a year paid to an employee paid on a full-time course lasting at least a year

Question 22

Exempt benefits (training)

Answer 22

Work related training and related costs

Question 23

Exempt benefits (air miles)

Answer 23

Air miles or car fuels coupons obtained as a result of business expenditure

Question 24

Exempt benefits (work bus)

Answer 24

Cost of work buses

Question 25

Exempt benefits (transport)

Answer 25

Transport/overnight costs where public transport is disrupted by industrial action

Question 26

Exempt benefits (mobile phone)

Answer 26

Private use of one mobile phone

Question 27

Exempt benefits (uniforms)

Answer 27

Employer provided uniforms

Question 28

Exempt benefits (private)

Answer 28

Private medical insurance premiums paid to cover treatment when employee is outside UK performing their duties

Question 29

Exempt benefits (loans)

Answer 29

Cheap loans that don’t exceed £10000 at any time in tax year

Question 30

Exempt benefits (job)

Answer 30

Job related accommodation

Question 31

Exempt benefits (expense)

Answer 31

Reimbursed expenses

Question 32

Exempt benefits (household)

Answer 32

Employer contributions towards household costs incurred by an employee who works wholly or partly at home

Question 33

Exempt benefits (recommended)

Answer 33

Recommended medical treatment costing up to $500 per employee per tax year paid for by an employer

Question 34

Exempt benefits (trivial)

Answer 34

Trivial benefits costing employees up to £50 per tax year

Question 35

Exempt benefits (pensions)

Answer 35

Pensions advice up to £500. Anything over is not exempt

Question 36

Exempt benefits (charging points)

Answer 36

Workplace charging points for electric or hybrid cars used by employees