Employment Income (6)

Question 1

No taxable benefit if accommodation is job related (proper performance)

Answer 1

Where it is necessary for proper performance of the employee’s duties

Question 2

No taxable benefit if accommodation is job related (employee’s duties)

Answer 2

For better performance of employee’s duties and it is customary for employers to provide living accommodation

Question 3

No taxable benefit if accommodation is job related (special threat)

Answer 3

Where there is a special threat to employee’s security and he resides in accommodation as part of special security arrangements

Question 4

If the accommodation is not job related than benefit is higher of (annual)

Answer 4

Accommodation’s annual value

Question 5

If the accommodation is not job related than benefit is higher of (rent)

Answer 5

Rent actually paid for it by the employer

Question 6

If the accommodation is not job related than benefit is higher of (benefit)

Answer 6

Benefit is reduced by any rent or contribution paid by the employee

Question 7

If cost of living accommodation is less than £75000?

Answer 7

No expensive accommodation benefit irrespective ofmarket value when employee first occupied the property

Question 8

Amount asset in use of assets is higher of (market)

Answer 8

20% * market value of asset when first provided

Question 9

Amount asset in use of assets is higher of (rental)

Answer 9

Rental paid by employer

Question 10

If an employee is gifted a new asset?

Answer 10

He is taxed on cost of the asset

Question 11

If an employee is gifted an asset that has previously been used, he is taxed higher of (market value)?

Answer 11

Market value of asset when given to him

Question 12

If an employee is gifted an asset that has pr eviously been used, he is taxed higher of (first made available)?

Answer 12

Market value of asset when first made available to employee - benefit assessed on employee during the time he had use of it

Question 13

When are expenses such as lighting and heating taxable on the employee?

Answer 13

If they are paid by the employer

Question 14

When private use is not insignificant for van?

Answer 14

Tax charge is £3960

Question 15

When an employee uses an employers van for journeys between home and work and is insignificant?

Answer 15

There is no benefit

Question 16

What is a beneficial loan?

Answer 16

One made to an employee below the official rate of interest

Question 17

When there is no benefit for a loan in beneficial loans?

Answer 17

It does not exceed £10000 in total at any time in the tax year

Question 18

Methods for calculating beneficial loans?

Answer 18

Average and accurate

Question 19

Professional subscription and employment income?

Answer 19

Deducted

Question 20

Charitable payroll deductions and employment income?

Answer 20

Deducted

Question 21

Beneficial loan and employment income?

Answer 21

Added

Question 22

Health club membership and employment income?

Answer 22

Added

Question 23

Home entertainment system and employment income?

Answer 23

Added * 20%

Question 24

Dividend income?

Answer 24

Added in employment income

Question 25

Additional accommodation benefit?

Answer 25

Added to accommodation benefit

Question 26

When will property be valued at the market value?

Answer 26

When property costs more than £75000

Owned by the employer for more than six years

Question 27

Calcualte taxable benefit on motor vehicles?

Answer 27

List price * %

Question 28

When determining the % in a taxable benefit in motor vehicles?

Answer 28

Always round down

Question 29

When calculating fuel benefit?

Answer 29

£27800 is the base figure

Question 30

List price * CO2 emissions?

Answer 30

How to calculate vehicle taxable benefit

Question 31

Capital contributions of £5500 for a vehicle?

Answer 31

Maximum of £5000 is deducted from the list price

Question 32

If car was provided on 6 August 2023?

Answer 32

Taxable benefit is only 4/12

Question 33

Contribution of £1000 to his company for use of the car?

Answer 33

£1000 is deducted from the taxable benefit AT THE VERY END

Question 34

Diesel car doesn’t meet RDE2 standards?

Answer 34

Add 16%

Question 35

Diesel car meets RDE2 standards?

Answer 35

Add 4%

Question 36

If the property is made available less than 6 years?

Answer 36

Don’t use market value, only the property cost

Question 37

Accommodation living expenses if job-related accommodation lower of (taxable benefit)?

Answer 37

Expenses

10% of net earnings

Question 38

Accommodation living expenses if not job-related?

Answer 38

Both the accommodation and living expenses.

Restricted benefits (time-apportioned) + non-time apportioned benefits

Other benefits to salary aren’t relevant

Question 39

Calculate use benefit of a private asset?

Answer 39

Market value when first provided * 20% * time-apportioned

Question 40

Private use asset higher of?

Answer 40

Current market value - price paid (if available)

Originally market value - use benefit (if available)