Chapter 4 employment income exempted benefits Flashcards
(27 cards)
What is one type of exempt benefit related to pension schemes?
Contributions by an employer to a registered pension scheme
What qualifies as a trivial benefit?
A benefit costing less than £50, not cash or a cash voucher, provided for a non-work reason
Example: A birthday gift or social event
What is the annual cap for trivial benefits provided to certain directors?
£300
How much pension advice and tax planning is exempt for employees per tax year?
Up to £500, the amount exceeding 500 is fully taxable
What is the exemption for mobile telephones provided by employers?
One mobile telephone available for private use, including all calls
What is the exemption for meals provided in a canteen?
Free or subsidised meals available to all staff
What is the limit for annual social events paid for by the employer?
Up to £150 per head per tax year, (staff party fully taxed, unless it is a annual event)
What happens if a social event costs more than £150?e.g 160
the whole 160 is taxable, but when there is different events within a year
e.g 3 events a,b,c
a. 160fully taxed, coz >150
b. 80fully taxed
c.120exempted
if there is different events and the sum of the different events is more than 150, choose the most expensive event to exempt, in this case that would be c. coz the sum of b and c exceeds 150, while a. exceeds 150 by itself.
Are one-off events exempt from the annual social event benefit?
No, one-off events are taxable irrespective of cost (anniversaries are one off events not an annual event)
What type of entertainment provided by a third party is exempt?
Seats at sporting or cultural events
What is the limit for non-cash gifts from third parties?
Up to £250 per tax year from the same donor
What is an exempt benefit related to parking?
Provision of a parking space at or near the employee’s place of work
What is the maximum award under a staff suggestion scheme that is exempt?
Up to £5,000
What type of training courses are exempt?
Work-related training courses
What kind of sports and recreation facilities can be exempt?
Facilities available to employees generally but not to the general public
What childcare facilities are exempt?
Childcare facilities run by or on behalf of an employer
What is the exemption limit for payments towards additional costs of working from home?
Up to £6 per week without supporting evidence, if require more than 6 need evidence like documents
What are the reimbursement limits for personal incidental expenses while away on business?
Up to £5 per night in the UK, £10 per night abroad, if exceed these limits, the whole amount is taxable not the amount that exceeds it. e.g if in uk 6 is reimbursed, 6 is taxable not 1.
What transportation benefits are exempt?
Works buses and subsidies for public bus services
What travel expenses can be exempt?
Expenses when public transport is disrupted, late night journeys, and car sharing breakdowns
What equipment related to cycling is exempt?
Use of bicycles or cyclists’ safety equipment available to all employees
What is the maximum amount for reasonable removal expenses (meaning if you move somewhere because of your job or your job relocates, those expenses require to move) covered by an employer?
£8,000, the only balance is taxable
What type of awards related to long service are exempt? (20 years or more)
Non-cash awards for at least 20 years’ service, not exceeding £50 per year of service, (only excess is taxable)
What is exempt regarding eye tests?
Eye tests required under health and safety legislation for employees using display screen equipment
