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10 Cards in this Set
- Front
- Back
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When to gross up and extend taxable bands: |
Always 100/80 extension! Gift aid donations
Personal pension contributions
Give as you earn = No |
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When to use higher rate band: |
Once higher rate band reached on income, then all the rest is at higher rate i.e Savings and Dividends |
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What to do with Round sum allowance? |
Take the total figure provided to employee. |
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What is fixed rate motor expenses? |
This is the 45p 10k and 25p over 10k The difference to actual should be added or subtracted |
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Where FYA 100% should be calculated? |
Calculate in the WDV area at 100% or 50% |
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How to calculate Class 1A NIC - Benefits |
Total benefit provided @ 13.8% |
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How to calculate Transfer of asset to employee: |
Higher of: Current MV Original MV Less: Benefit on asset taxed in the year Note: Often using asset when employer just gives you it |
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What qualifies as a Private use asset: |
Asset with private use by sole-trader or Director
Not employees! Use Business use % not private |
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How to calculate PAYE settlement: |
Total payment Add Income tax Gross benefit Add Class 1B NIC @ 13.8% Total payable to HMRC |
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How to Calculate after-tax costs of purchases: |
Cash Income tax saving Class 4 NIC saving = Total After tax cost of purchase |
