Employment Income Flashcards
(10 cards)
Professional subscriptions
Uniform equipment tools
WFH expenses
Employee cash contributions to OPS
reimbursable expenses that aren’t included as income
Travel expenses rules
No place of work = travel expenses allowed
WFH = travel expenses allowed
Temporary place of work = allowed for less than 24 months
Entertaining allowance
Reimbursed directly
EE exempt income
ER Disallow
Specific allowance:
EE include as income deduct expenses
ER disallow full allowance
General round sum allowance:
EE include as income deduct allowable expenses (not entertaining)
ER allowable expense
Assets transferred to employee
If new, use cost to employer
If employee used first:
Higher of:
MV when gifted
MV when first given less the 20% contribution for use
Then less any purchase contribution.
If CAR, VAN, BIKE, always use current MV
Loan balance changes approach
Firstly only on loans greater than 10k in a year.
Specific method or the average method.
Use either of these methods to calculate the interest that should be paid with the 2.25% then less
the actual interest paid using specific dates etc.
Overseas employment benefits
Exempt:
Cost of board and lodgings abroad
Travel home (any amount)
If gone for more than 60 days, the spouse and children can fly out twice per year.
Overseas medical treatment and insurance abroad
Salary sacrifice
Taxed on the higher of:
Cash amount given up
TB under normal rules
Subject to class 1A NICS too
Exempt from salary sacrifice.
If these provided they are exempt.
Pension savings
Employer provides pension advice
Childcare
Cycle to work
Not exempt from salary sacrifice, if these are chosen, taxable
Ultra low emission cars, using car rules.
Plus any other benefit except exempt ones
Van benefit
£3,960 unless zero emission then £0
Fuel is £757 per year
