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Flashcards in Income Tax Deck (9)
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1
Q

Gift aid rule

A

Extends basic rate band by gift aid x 100/80

2
Q

Accommodation benefits

A

Annual value+ expensive living (cost-75000)x 3%

Job related- 10% of net employment income

3
Q

Ancillary service

A

Add all unless repairs

4
Q

Furniture and 2nd phone

A

20% market value

5
Q

Badges of trade

A

Subject
Frequency
Length of ownership
Motive

6
Q

Format for trading income

A

Net profit
Add back expenditure not deductible for tax purposes

Less
Non trading income
Expenditure deductible for tax purposes

Tax adjusted trading income

7
Q

Disallowable/ add back expenditure

A
Drawings
Provisions
Depreciation 
Training if non trade
Improvements
Entertaining clients 
Legal non trade
8
Q

Relocation allowance exemption

A

8000

9
Q

Furniture purchase

A

Higher of
Market value- purchase price

Or
Cost
 less benefit in kind charged for use
Less purchase price 
And