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employment benefits

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › employment benefits

  • This topic has 4 replies, 2 voices, and was last updated 2 years ago by JillyB.
Viewing 5 posts - 1 through 5 (of 5 total)
  • Author
    Posts
  • February 22, 2024 at 1:12 pm #700882
    lokeshdh00
    Participant
    • Topics: 132
    • Replies: 129
    • ☆☆☆

    Dear jill, I hope you are well. I came acreoss a question in bpp practice book. its Question no. 116 called WAI. here emplyer gave 2 mobile phoens to an employee and only one mobile phone is excemp . but in model answer it its calculated as 20% of 400 as addback.

    thhere were 2 phones given both at cost of 400 each

    February 22, 2024 at 1:14 pm #700883
    lokeshdh00
    Participant
    • Topics: 132
    • Replies: 129
    • ☆☆☆

    why full 400 cost was not added back

    February 23, 2024 at 1:35 pm #700960
    lokeshdh00
    Participant
    • Topics: 132
    • Replies: 129
    • ☆☆☆

    Also, In question called sammi ( question no 111 ) , There when the smark ltd provideded employer sammi car benefit . the corporate tax saving calculated as : 19 % of class 1 A NIC and allowable leasing car benefit ( less 15 % )

    i am confused why they calculated 19% of class 1 A nic as tax saving. like what is going on.

    February 23, 2024 at 1:43 pm #700961
    lokeshdh00
    Participant
    • Topics: 132
    • Replies: 129
    • ☆☆☆

    ohh so in second problem the class 1 employers nic liablility and Class 1A are allowable . i mean thats what the calculation suggests. please help me here

    February 26, 2024 at 5:14 pm #701204
    JillyB
    Keymaster
    • Topics: 0
    • Replies: 899
    • ☆☆☆☆

    Q1 – mobile phones – first phone is free from BIk and the second is use of asset rules – 20% of £400
    Q2 – Ct is 19% relief on the NIC paid on the BIK

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