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Income tax 13/14
|Employment income is assessed in the year you receive the income. True or false?
|Rental income is assessed on an accruals basis. True or false?
|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?
|Taxable income above what level is taxed at higher rate?
|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?
|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?
|What is the upper limit for the cost of a car when assessing a benefit?
|What is the amount by which you multiply the car % to give the fuel benefit?
|The first 10,000 miles of cars used for business mileage are at what rate for calculating benefit or allowance?
|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?
|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?
|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?
|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?
|You can deduct professional subscriptions from employment income. True or false?
|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?
|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?
|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.