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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › employment benefits
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
why full 400 cost was not added back
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.
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
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
