Benefits, expenses, income etc

Question 1

maintenance and redecoration?

Answer 1

allowable

Question 2

salary to sole trader or partner

Answer 2

disallowable

Question 3

class 2 nic’s and 4 nic’s personal pension contributions etc

Answer 3

disallowable

Question 4

increase in a general provision

Answer 4

disallowable

Question 5

bad debts

Answer 5

allowable

Question 6

loan to former employee written off

Answer 6

disallowable

Question 7

gift of trade samples

Answer 7

allowable

Question 8

gifts to customer- food, drink, tobacco, vouchers exchangebel for goods

Answer 8

disallowable

Question 9

gifts to cusomters, more than 50£

Answer 9

disallowable

Question 10

donation to national charities

Answer 10

disallowable

Question 11

donation to local charities in exchange for advertisement

Answer 11

allowable

Question 12

gifts of trading stock/p & m to charities and schools

Answer 12

allowable

Question 13

subscriptions to trade and prfoessional assocs

Answer 13

allowable

Question 14

fines and penalties

Answer 14

disallowable- unless paking fine by employee

Question 15

interest paid on money borrowed for business purposes

Answer 15

allowable

Question 16

interest on late payment of tax

Answer 16

disallowable

Question 17

legal and prfoessional fees relating to hmrc enquiry

Answer 17

disallowable

Question 18

legal fees associated with acquiring capital assests

Answer 18

disallowable

Question 19

legal for renewal of lease

Answer 19

allow

Question 20

cost for patents/copy wright

Answer 20

allow

Question 21

cost of raising long term finance

Answer 21

allow

Question 22

car lease- when is it allowable and disallowable, after april 18 and before april 18

Answer 22

15% disallowable if over 110 after 18, if over 130 before

Question 23

benefit cost of vouchers that can be exchanged for goods

Answer 23

cost to employer

Question 24

benefit cost of cash vouchers

Answer 24

sum of money it can be exchanged for

Question 25

if living accom is rented by the employer

Answer 25

higher of annual val and rent costs

Question 26

cost of the accom is made up of?

Answer 26

cost when bought plus any expenditure on capital improvements from BEFORE the tax year started

Question 27

if the property was acquired more than 6 years ago?

Answer 27

use market val when it was first provided plus only SUBSEQUENT improvements

Question 28

bills rleated to living accom?

Answer 28

cost to employer

Question 29

pool cars

Answer 29

no benefit

Question 30

car accesseories

Answer 30

any original accessories added plus any since which are over 100

Question 31

what is cost of car

Answer 31

LIST PRICE

Question 32

if an employee makes a partial contirb to fuel?

Answer 32

no deduction for this- treat as if employer provides the whole thing

Question 33

vans with private use from home to work?

Answer 33

no benefit

Question 34

vans with 0 co2 emissions?

Answer 34

2792- in tax tables!

Question 35

assets for private use?

Answer 35

higher of 20% of the market value of the asset when first provided to the employee or the rent that the employer pays

Question 36

in house benefits

Answer 36

marginal cost

Question 37

other ebenfits not elsewhere covered?

Answer 37

cost to employer

Question 38

pension scheme contributions

Answer 38

exempt

Question 39

a trivial benefit

Answer 39

a benefit of less than 50, cap of 300 for some directos

Question 40

pension and tax planning advice up to 500

Answer 40

exempt

Question 41

one mobile phone

Answer 41

exempt

Question 42

staff party which is not an annual event

Answer 42

taxable

Question 43

annual social events

Answer 43

up to 150 exempt- if they go over this, the whole amount is taxable, not just the amoun in excess of 150

Question 44

non cash girsts from third parties

Answer 44

exempt- up to 250 per tax year from same donor

Question 45

staff suggestion schemes

Answer 45

awards of up to 500 exempt

Question 46

sports/recreation available to employees but not public

Answer 46

exempt

Question 47

childcare run at employers

Answer 47

exempt

Question 48

anyone in a childcare scheme before april 2011?

Answer 48

55 a week is exempt

Question 49

childcare after april 2011?

Answer 49

55 a week for basic 28 for higher 25 for additional

Question 50

costs of working from home

Answer 50

6- without supporting evidence- above this needs supporting evidence

Question 51

telephone calls home while away/other personal incidental expenses

Answer 51

5 per night in the uk, 10 per night abroad. if it esceeds this, the whole lot is taxable not just the excess

Question 52

removal expenses when moving

Answer 52

up to 8000

Question 53

1 medical check up

Answer 53

exempt

Question 54

medical tratement to assist with return to work

Answer 54

up to 500

Question 55

interest on gov securities ie gilts, exchequer stock, treasury stock

Answer 55

not exempt