Hi.
Bpp kit q95 Richard
Richard had three employees working for him in his restaurant during tax year 16/17
1) a chef was employed throughout the tax year 16/17 on a gross annual salary of 46,000. The chef was provided with a petrol powered motor car throughout the tax year. The list price of the motor car is the same as its cost. Richard didnot provide any fuel for private journeys.
2) a part time waitress who was employed for 20 hourd per week throughout the tax year on a gross annual salary of 8000
3) an assistant chef who wss employed for eight months from 6 august to 5 April 2017 on gross monthly salary of 2200
Calculate employer class 1 and clsss 1A NIC.
I was able to work it out but i did not subtract the employment allowance of 3000 as i thought we subtract it when we have one employee only. (Is it because only one is a full time employee?)
Ask the Tutor ACCA TX-UK
Employment allowance
No - I'm afraid you have this the wrong way around - the ONLY time the employment allowance is NOT available is when dealing with a company and there is only one employee - the director of the company!
Sorry but I still don’t understand it.
How is it only 1 employee? There are 3 employees; waitress, chef and assistant chef.
Look at what you stated in your final paragraph of your first note and then look at my answer.
UNLESS you are dealing with a company where the only employee is the director, the employment allowance will be available as in this example.
Okay, so basically employment allowance will always be available unless its a company and the only employee is the director. (And it is not available if you hired someone for personal work, right?)
Hope i got it right and thank you for helping me out.
Correct
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