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Income tax 13/14
| Question | Answer |
|---|---|
| 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
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