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Income tax 13/14

QuestionAnswer
Employment income is assessed in the year you receive the income. True or false? True
Rental income is assessed on an accruals basis. True or false? True
Dividend income is assessed on an accruals basis. True or false? False. It is assessed in the year in which it is received
Bank interest received is grossed up by 100/90. True or false? False. It is grossed up by 100/80
General income is taxed at what rates? 20%, 40% and 45%
Dividend income is taxed at what rates? 10%, 32.5% and 37.5%
The annual allowance for 13/14 is how much? £9,440
Taxable income above what level is taxed at higher rate? £32,010
Assets used by employees at home are assessed as benefits using what rule? 20% of the cost of the asset
Car parking spaces are a benefit in kind. True or false? False
How do you calculate the benefit for a petrol car? Cost of car x relevant %. % calculated by rounding emissions figure down to nearest 5 or 0, deduct 135, divide by 5 and add to 15%
How many extra % do you add for a diesel car? 3%
What is the upper limit for the cost of a car when assessing a benefit? £80,000
What is the amount by which you multiply the car % to give the fuel benefit? £21,100
The first 10,000 miles of cars used for business mileage are at what rate for calculating benefit or allowance? 45p
Occupational pensions paid by the employee are treated how in the tax computation? Deduct from salary
Personal pensions are treated how in the tax computation? Gross up and extend the basic rate band by the gross amount
How do you calculate wear and tear allowance? 10% x (rental income - council tax - water rates)
Are you allowed depreciation as a deductible expense when calculating rental profit? No
A new conservatory is an allowable deduction when calculating rental profit. True or false? False - it is capital expenditure
Redecorating a kitchen is an allowable deduction when calculating rental profit. True or false? True - it is revenue expenditure
Agent's fees are an allowable deduction when calculating rental profit. True or false? True - they are a revenue expense.
If you pay an amount towards the private petrol use of a company car then you can deduct it from the benefit calculated. True or false? False, unless the whole of the private petrol is paid for. Better to pay towards the cost of the car not the petrol.
Gilt income is paid gross. True or false? True
ISA income should be included in a tax computation. True or false? False - it is exempt
Loans from an employer under how much are not assessable as a benefit? £5,000
How do you calculate additional accommodation benefit? (Cost of house - £75,000) x official rate of interest
How do you calculate loan benefit? Interest according to official rate of interest - interest actually paid
Is all accommodation paid for by an employer a benefit? No - job related accommodation is not a benefit.
By what date must you submit your tax return to avoid penalties? 31 January following the end of the tax year ie 31/1/15
By what date must you pay your final tax payable? 31 January following the end of the tax year 31/1/15
By what date must you submit a paper tax return rather than doing it online? 31 October following the end of the tax year
You can disclose information about someone's tax affairs to members of their family. True or false? False - confidentiality. Unless you have express permission to do so.
How much is the initial penalty for late submission of a tax return? £100
You can deduct professional subscriptions from employment income. True or false? True
National Savings & Investment Accounts and Income Bonds have their interest paid net. True or false? False, it is paid gross.
The way to gross up bank and building society interest is to do what? Multiply the amount received by 100/80.
Rent a room applies whether the individual rents or owns the property. True or false? True
If laundry is provided at a cost over and above the rental of the room this is added to the rental received when calculating rent a room relief. True or false? True
Property losses can be set against income from employment. True or false? False. A loss can only be set against profits in the same year or carried forward against future profits from properties.
Relocation expenses of up to £10,000 are tax-free. True or false? False, it is £8,000.
Created by: amandacavanagh on 2006-11-21



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