Lecture 3- Employment income

Description

Highers Accounting and Finance (Year 2) (Principles of UK Taxation) Quiz on Lecture 3- Employment income, created by George Mariyajohnson on 26/01/2021.
George Mariyajohnson
Quiz by George Mariyajohnson, updated more than 1 year ago
George Mariyajohnson
Created by George Mariyajohnson almost 4 years ago
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Resource summary

Question 1

Question
Employment income includes all [blank_start]salaries[blank_end], [blank_start]fees[blank_end], [blank_start]wages[blank_end] & [blank_start]profits[blank_end]. Therefore, it is anything received as result of [blank_start]office[blank_end] or [blank_start]employment[blank_end]
Answer
  • salaries
  • fees
  • wages
  • profits
  • office
  • employment

Question 2

Question
Total taxable employment income includes [blank_start]salaries[blank_end] & [blank_start]wages[blank_end] & [blank_start]items[blank_end] provided for employee unless specifically [blank_start]exempt[blank_end] & other [blank_start]benefits[blank_end] provided where monetary value must be established deduct [blank_start]pension contributions[blank_end] made by [blank_start]employee[blank_end] & amounts [blank_start]spent[blank_end] by employee which are allowable for tax
Answer
  • salaries
  • wages
  • items
  • exempt
  • benefits
  • pension contributions
  • employee
  • spent

Question 3

Question
Basis of assessment is way in which [blank_start]income[blank_end] is allocated to correct [blank_start]tax years[blank_end] for [blank_start]income tax[blank_end] payment purposes. It is on [blank_start]receipts[blank_end] basis (i.e. an employee is [blank_start]taxed[blank_end] on what they [blank_start]receive[blank_end] during tax year)
Answer
  • income
  • tax years
  • income tax
  • receipts
  • taxed
  • receive

Question 4

Question
In relation to basis of assessment, for employees “[blank_start]receipts[blank_end]” means that an item will be [blank_start]taxed[blank_end] on earliest of receiving [blank_start]income[blank_end] & being entitled to its [blank_start]receipt[blank_end]. However, for directors it will be taxed on earliest of date that [blank_start]income[blank_end] is [blank_start]credited[blank_end] to director, if amount of [blank_start]directors fees[blank_end] have been decided by end of [blank_start]period[blank_end] of account & [blank_start]date[blank_end] amount is determined
Answer
  • receipts
  • taxed
  • income
  • receipt
  • income
  • credited
  • directors fees
  • period
  • date

Question 5

Question
One important difference between employment & self employment is [blank_start]expenses[blank_end]. Those in self employment can usually [blank_start]deduct more expenses than[blank_end] those in employment
Answer
  • expenses
  • deduct more expenses than

Question 6

Question
Another important difference between employment & self employment is [blank_start]tax payment dates[blank_end]. Those in self employment pay their [blank_start]tax much later[blank_end] than those in employment
Answer
  • tax payment dates
  • tax much later

Question 7

Question
Third important difference between employment & self employment is [blank_start]national insurance[blank_end]. Those in employment have much [blank_start]higher national insurance contributions[blank_end] than those in self employment
Answer
  • national insurance
  • higher national insurance contributions

Question 8

Question
Essential difference between employment & self employment is those in employment are under [blank_start]contract of service[blank_end] whereas those in self employment are under [blank_start]contract for service rendered[blank_end] (made)
Answer
  • contract of service
  • contract for service rendered

Question 9

Question
One criteria that has been taken into account for determining between employee & self employed is [blank_start]control[blank_end]. This refers to [blank_start]control[blank_end] employer has over worker i.e. whether they can say [blank_start]when[blank_end] & [blank_start]where[blank_end] they have got to do work ([blank_start]employee[blank_end]) or [blank_start]when[blank_end] & [blank_start]where[blank_end] they are going to do work ([blank_start]self employed[blank_end])
Answer
  • control
  • control
  • when
  • where
  • employee
  • when
  • where
  • self employed

Question 10

Question
Another criteria that has been taken into account for determining between employee & self employed is [blank_start]financial risk[blank_end]. An employee is generally paid [blank_start]fixed salary[blank_end] & have to [blank_start]attend[blank_end] work whether or not there is much work whereas self employed [blank_start]do not[blank_end] get paid [blank_start]fixed salary[blank_end] as [blank_start]money[blank_end] coming in depends on how much [blank_start]work[blank_end] there is
Answer
  • financial risk
  • fixed salary
  • attend
  • do not
  • fixed salary
  • money
  • work

Question 11

Question
Third criteria that has been taken into account for determining between employee & self employed is [blank_start]equipment[blank_end]. If you are an employee you will be [blank_start]provided[blank_end] with all [blank_start]equipment[blank_end] needed for that work whereas those who are self employed will have to [blank_start]provide[blank_end] their [blank_start]own equipment[blank_end]
Answer
  • equipment
  • provided
  • equipment
  • provide
  • own equipment

Question 12

Question
Fourth criteria that has been taken into account for determining between employee & self employed is [blank_start]substitution[blank_end] ([blank_start]who does work?[blank_end]). For employee they have to [blank_start]come in[blank_end] & do [blank_start]particular work[blank_end] whereas for self employed they [blank_start]do not[blank_end] have to [blank_start]come in[blank_end] & do [blank_start]particular work[blank_end]
Answer
  • substitution
  • who does work?
  • come in
  • particular work
  • do not
  • come in
  • particular work

Question 13

Question
Fifth criteria that has been taken into account for determining between employee & self employed is [blank_start]further work[blank_end]. If you are an employee, you are employed on [blank_start]continuing basis[blank_end] & therefore would be [blank_start]expected[blank_end] to come into work [blank_start]next week[blank_end] & [blank_start]continue[blank_end] whereas if you are self employed, you have one [blank_start]particular job[blank_end] & wouldn't be [blank_start]expected[blank_end] to have work at that particular workplace [blank_start]next week[blank_end]
Answer
  • further work
  • continuing basis
  • expected
  • next week
  • continue
  • particular job
  • expected
  • next week

Question 14

Question
Sixth criteria that has been taken into account for determining between employee & self employed is [blank_start]responsibility[blank_end]. Those who are self employed have [blank_start]more responsibility[blank_end] but if you are [blank_start]director[blank_end] or [blank_start]manager[blank_end] you are an [blank_start]employee[blank_end] & have [blank_start]responsibility[blank_end]
Answer
  • responsibility
  • more responsibility
  • director
  • manager
  • employee
  • responsibility

Question 15

Question
Seventh criteria that has been taken into account for determining between employee & self employed is [blank_start]number[blank_end] of [blank_start]people worked[blank_end] for. If you are an employee you generally have [blank_start]one employer[blank_end] or possibly [blank_start]two[blank_end] whereas if you are self employed you may have [blank_start]many clients[blank_end]
Answer
  • number
  • people worked
  • one employer
  • two
  • many clients

Question 16

Question
Eighth criteria that has been taken into account for determining between employee & self employed is [blank_start]holiday & sick pay[blank_end]. If you are an employee you are [blank_start]entitled[blank_end] to [blank_start]holiday & sick pay[blank_end] whereas if you are self employed you [blank_start]are not[blank_end]
Answer
  • holiday & sick pay
  • entitled
  • holiday & sick pay
  • are not

Question 17

Question
Overall, [blank_start]intention of parties[blank_end] must be looked at do determine whether you are an employee or self employed
Answer
  • intention of parties

Question 18

Question
Allowable expenses- Expenses you can [blank_start]deduct[blank_end] from amounts of [blank_start]salary[blank_end] which gives [blank_start]taxable[blank_end] employment income. Certain expenses specifically allowed such as [blank_start]pension contributions[blank_end] by employee, [blank_start]subscriptions[blank_end] to professional bodies, [blank_start]donations[blank_end] to payroll giving scheme & necessary [blank_start]travel expenses[blank_end]
Answer
  • deduct
  • salary
  • taxable
  • pension contributions
  • subscriptions
  • donations
  • travel expenses

Question 19

Question
Travel expenses are [blank_start]travel[blank_end] in course of [blank_start]duty[blank_end] & as it is difficult to identify exact cost, there are [blank_start]approved mileage rates[blank_end] in place which an employee can [blank_start]claim[blank_end] & employer can [blank_start]reimburse[blank_end] (repay) without incurring any [blank_start]taxable[blank_end] benefit on employee
Answer
  • travel
  • duty
  • approved mileage rates
  • claim
  • reimburse
  • taxable

Question 20

Question
Benefits in kind- [blank_start]Income[blank_end] in form of [blank_start]goods[blank_end] & [blank_start]services[blank_end] provided to an [blank_start]employee[blank_end], or member of their family. In order to tax these items, [blank_start]monetary value[blank_end] must be determined
Answer
  • Income
  • goods
  • services
  • employee
  • monetary value

Question 21

Question
Items not taxed include [blank_start]meals[blank_end] in staff canteen (if [blank_start]available to all[blank_end]), [blank_start]in-house[blank_end] sports facilities, staff [blank_start]entertaining[blank_end] up to [blank_start]£150[blank_end]/head/year, [blank_start]parking space[blank_end], “[blank_start]green[blank_end]” commuting benefits, [blank_start]long service[blank_end] awards, [blank_start]non-cash[blank_end] gifts from [blank_start]other[blank_end] than employer, [blank_start]mobile telephone[blank_end] & [blank_start]trivial benefits[blank_end] (flowers for retirement/illness)
Answer
  • meals
  • available to all
  • in-house
  • entertaining
  • £150
  • parking space
  • green
  • long service
  • non-cash
  • other
  • mobile telephone
  • trivial benefits
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