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If the amount of the LOAN is no more than £10,000, there is no benefit. The £10,000 exemption applies to the LOAN itself, not the benefit charge on that loan. If the amount of the LOAN is £2,600, there is no benefit and therefore no Class 1A NIC. If the BENEFIT (ie the amount of the loan x interest saving) is £2,600 (or any amount for that matter) it is assessable and therefore liable to Class 1A NIC
The 20% is for the use of assets benefit (ie the asset belongs to your employer but you use it for private purposes). The payment of a bill is not an asset! If your electric bill is £200, then there’s no difference from a tax perspective if your employer gives you the £200 to pay the bill (eg in the form of a bonus) or if your employer pays the bill for you directly. Either way, you are £200 in pocket and therefore the full £200 is taxable on you.
Donations under the payroll giving scheme are paid gross and are an allowable deduction in arriving at employment income. Therefore a smaller amount of employment income is included in the income tax computation which means that the correct amount of tax relief is automatically given. There is no further impact on the income tax computation.
The past paper section on the ACCA website does not update them for the latest Finance Act. You will have to buy a FA 2014 revision kit.
It’s a really bad idea to use out of date tax material. If you’re serious about passing then I would recommend that you bite the bullet and at the very least buy an up to date revision kit. I don’t think that you really need to buy a new textbook as the lecture notes on this site will be more than sufficient to bring you up to date with the changes, but a new revision kit is a must.
