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1.sir it sounds quite dumb but i did not understand what actually ‘relief’ means ? for example, relief is available for travelling expenditure where an employee travels to visit client.
2. what is mean by payroll deduction scheme? is it different from donations under the gift aid scheme?
3. ‘the individual does not provide his own equipment in employment” . this was listed in page 1 of employment income. but, after few pages, there was AMAP provided for employee’s cars, then capital allowances for employee’s plant and machinery. in these cases, employee is using his own equipment for employment.
1. This means tax relief is available either as exempt income if paid for by employer, or an allowable deduction if paid by the employee
2. yes very different as explained in the notes – contributions made under the payroll deduction scheme are paid gross and are allowable deductions from employment income – gift aid payments are NOT deducted from income on the income tax computation but will extend the basic and higher rate band limits
3 you firstly quote one of many tests that may be used in determining whether an individual is treated as employed or self employed – no single issue determines this final conclusion. if therefore an individual IS an employee (has a contract of service) and then uses his own car for business travel then AMAP is used and if the individual does (rarely) use his own equipment then CA’s will be available to him/her.
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