Tax Principles
What does the property value have to be above where there is additional rent? - answer £75,000
How many years does the property have to be owned by the employer before given to the employee, for
it to be valued at Market Value & not the orginal cost? - answer MORE THAN 6 years
What % does the use of assets have to be used for private use to be deemed as insignificant ? - answer
40%
For Car benefit, what is the maximum contribution the employee can contribute? - answer £5000
Can you deduct the employee contributions to fuel for cars? - answer No
What cost does in-house benefit use? - answer Marginal - the additional cost, NOT the normal fee or
average.
What is the maximum % a Car benefit can go up to? - answer 37%
Is employment income on an accruals or receipts basis ? - answer receipts - when you are paid or
entitiled to
When is Living accomodation EXEMPT from being a chargeable benefit? - answer Job-related -
proper/better performance or is provided if there is a security threat
Can directors claim the exemptions of Living accomodation? - answer Yes - If he is working full time,
owns less than 5% shares or works for a non-profit charity.
,When does the employee have to pay back the benefit by for the benefit to be zero ? - answer 6th of
July, the following Tax year
Is L&H a chargeable benefit or Exempt benefit regarding accommodation expenses? - answer
Chargeable.
RITZ LTD decorated the flat which the employer owns, but is currently being resided by an employee
called Bob, does Bob have to pay for this decoration accomodation expense? - answer Yes
For a VAN is driving from work to home considered private use? - answer No
How do you calculate Assets for private use? - answer 20% the Market Value (If its 41%+ for Private use)
Is a pool car a taxable benefit? - answer No, it is exempt.
When must you pay your PAYE by ? - answer 2 weeks after the end of the tax month (5th) so the 19TH of
each month.
How many employee's must you have where you have to submit your PAYE payments electronically? -
answer If you have 250+ employees
Are PAYE payment deadlines extended if you pay electronically? - answer Yes, they are extended to the
22nd (By 3 days)
When are you able to pay your PAYE quarterly? - answer If your NI & PAYE is less than £1500 a month
Is it a Criminal offence to not comply with HMRC wanting security where payments are at risk? - answer
Yes & up to a £5000 fine.
,What is Real time information ? - answer Emloyers are made to provide HMRC with information
everytime a payment is made to an employee, this ensures the right amount of tax is being paid over.
What is the tax code 'L' & does it come before or after the number? - answer Basic Personal allowance,
and it goes after.
What is the tax code 'N' & does it come before or after the number? - answer LESS Marriage allowance
£1250 & it goes after
What is the tax code 'M' & does it come before or after the number? - answer PLUS Marriage Allowance
£1250 & is after
What is the tax code 'M' & does it come before or after the number? - answer It is when you have used
up all your personal allowance, either by earning £125K or having benefits over £12,500. It goes BEFORE
the number.
How do you calculate the number to go in the Tax Codes - answer (PA + Allowable exp+ overpaid tax) -
(Taxable benefits + Underpaid Tax) = Number
- You must remove the last digit of the number
- for the 'K' code ONLY, you muse '-1' from the number.
When you +/- the overpaid/underpaid tax when calculating the Tax code numbers, do you use the Tax
amount, or the Gross amount? - answer You Gross it up depending on the tax band they are in,
basic/higher etc.
Exempt benefit or chargeable: Contributions by an employer to a registered pension scheme? - answer
Exempt
, Exempt benefit or chargeable: A cash voucher of £50 given to an employee for their birthday - answer
Chargeable as it is CASH, must be non-cash
Exempt benefit or chargeable: Non-cash present of £40 for Sarahs birthday - answer Exempt
Exempt benefit or chargeable: £35 plant given to Sarah for her hard work the past month. - answer
Chargeable - the present must be for Non-work reasons , such as a birthdya, even if it is not cash &
Under £50 .
Exempt benefit or chargeable: Pension advice for £600 tax year - answer Chargeable - It is up to £500
Exempt benefit or chargeable: Tax planning for ALL employees for £500. - answer Exempt
Exempt benefit or chargeable: Tax planning given only to Jill & Bob the seniors worth £450 - answer
Chargeable - Must be Available to ALL employees.
Exempt benefit or chargeable: Birthday watch given to a Director for £250 (Only present given this year) -
answer Exempt - up to £300 for certain directors annually.
Exempt benefit or chargeable: Childcare facilities ran by the employer - answer Exempt
Exempt benefit or chargeable: Childcare payments by employers for £55 starting from April 2019. -
answer Chargeable : This scheme stopped on the 4th October 2018.
Exempt benefit or chargeable: in 2014, childcare payments of £55 per week, £28 for HR, & £25 for AR,
provided by the employer. - answer Exempt
Exempt benefit or chargeable: June is given £65 a week for her childcare, she is basic rate. (2016) -
answer Chargeable - £55 cap for basic rate.
What does the property value have to be above where there is additional rent? - answer £75,000
How many years does the property have to be owned by the employer before given to the employee, for
it to be valued at Market Value & not the orginal cost? - answer MORE THAN 6 years
What % does the use of assets have to be used for private use to be deemed as insignificant ? - answer
40%
For Car benefit, what is the maximum contribution the employee can contribute? - answer £5000
Can you deduct the employee contributions to fuel for cars? - answer No
What cost does in-house benefit use? - answer Marginal - the additional cost, NOT the normal fee or
average.
What is the maximum % a Car benefit can go up to? - answer 37%
Is employment income on an accruals or receipts basis ? - answer receipts - when you are paid or
entitiled to
When is Living accomodation EXEMPT from being a chargeable benefit? - answer Job-related -
proper/better performance or is provided if there is a security threat
Can directors claim the exemptions of Living accomodation? - answer Yes - If he is working full time,
owns less than 5% shares or works for a non-profit charity.
,When does the employee have to pay back the benefit by for the benefit to be zero ? - answer 6th of
July, the following Tax year
Is L&H a chargeable benefit or Exempt benefit regarding accommodation expenses? - answer
Chargeable.
RITZ LTD decorated the flat which the employer owns, but is currently being resided by an employee
called Bob, does Bob have to pay for this decoration accomodation expense? - answer Yes
For a VAN is driving from work to home considered private use? - answer No
How do you calculate Assets for private use? - answer 20% the Market Value (If its 41%+ for Private use)
Is a pool car a taxable benefit? - answer No, it is exempt.
When must you pay your PAYE by ? - answer 2 weeks after the end of the tax month (5th) so the 19TH of
each month.
How many employee's must you have where you have to submit your PAYE payments electronically? -
answer If you have 250+ employees
Are PAYE payment deadlines extended if you pay electronically? - answer Yes, they are extended to the
22nd (By 3 days)
When are you able to pay your PAYE quarterly? - answer If your NI & PAYE is less than £1500 a month
Is it a Criminal offence to not comply with HMRC wanting security where payments are at risk? - answer
Yes & up to a £5000 fine.
,What is Real time information ? - answer Emloyers are made to provide HMRC with information
everytime a payment is made to an employee, this ensures the right amount of tax is being paid over.
What is the tax code 'L' & does it come before or after the number? - answer Basic Personal allowance,
and it goes after.
What is the tax code 'N' & does it come before or after the number? - answer LESS Marriage allowance
£1250 & it goes after
What is the tax code 'M' & does it come before or after the number? - answer PLUS Marriage Allowance
£1250 & is after
What is the tax code 'M' & does it come before or after the number? - answer It is when you have used
up all your personal allowance, either by earning £125K or having benefits over £12,500. It goes BEFORE
the number.
How do you calculate the number to go in the Tax Codes - answer (PA + Allowable exp+ overpaid tax) -
(Taxable benefits + Underpaid Tax) = Number
- You must remove the last digit of the number
- for the 'K' code ONLY, you muse '-1' from the number.
When you +/- the overpaid/underpaid tax when calculating the Tax code numbers, do you use the Tax
amount, or the Gross amount? - answer You Gross it up depending on the tax band they are in,
basic/higher etc.
Exempt benefit or chargeable: Contributions by an employer to a registered pension scheme? - answer
Exempt
, Exempt benefit or chargeable: A cash voucher of £50 given to an employee for their birthday - answer
Chargeable as it is CASH, must be non-cash
Exempt benefit or chargeable: Non-cash present of £40 for Sarahs birthday - answer Exempt
Exempt benefit or chargeable: £35 plant given to Sarah for her hard work the past month. - answer
Chargeable - the present must be for Non-work reasons , such as a birthdya, even if it is not cash &
Under £50 .
Exempt benefit or chargeable: Pension advice for £600 tax year - answer Chargeable - It is up to £500
Exempt benefit or chargeable: Tax planning for ALL employees for £500. - answer Exempt
Exempt benefit or chargeable: Tax planning given only to Jill & Bob the seniors worth £450 - answer
Chargeable - Must be Available to ALL employees.
Exempt benefit or chargeable: Birthday watch given to a Director for £250 (Only present given this year) -
answer Exempt - up to £300 for certain directors annually.
Exempt benefit or chargeable: Childcare facilities ran by the employer - answer Exempt
Exempt benefit or chargeable: Childcare payments by employers for £55 starting from April 2019. -
answer Chargeable : This scheme stopped on the 4th October 2018.
Exempt benefit or chargeable: in 2014, childcare payments of £55 per week, £28 for HR, & £25 for AR,
provided by the employer. - answer Exempt
Exempt benefit or chargeable: June is given £65 a week for her childcare, she is basic rate. (2016) -
answer Chargeable - £55 cap for basic rate.
