TAX Ch-4

Which of the following are generally indicative of self-employment rather than employment?

(1) Contract allows a substitute to be provided

(2) Entitled to bonus and overtime

(3) Own equipment provided

(4) Work quoted on a fixed price

• 1. 1, 2 and 3

• 1. 2, 3 and 4

• 1. 1, 3 and 4

• 1. 1, 2 and 4

Robyn is a director of Ragle Ltd, which prepares accounts annually to 31 December. Robyn became entitled to a bonus on 31 January 2024 in relation to the year ended 31 December 2023. The bonus was paid on 15 February 2024 and credited to the accounts on 28 February 2024.

On which date will Robyn be treated as having received the bonus for tax purposes?

• 1. 31 December 2023

• 1. 31 January 2024

• 1. 15 February 2024

• 1. 28 February 2024

Which of the following are allowable expenses of employment?

(1) Contributions to an occupational pension scheme

(2) Payroll gift to charity

(3) Entertaining which is treated as allowable by the employer

(4) Professional subscriptions to approved bodies

• 1. 1, 2 and 3

• 1. 2, 3 and 4

• 1. 1, 3 and 4

• 1. 1, 2 and 4

Which of the following types of business travel are allowable expenses of employment?

(1) Travel to visit a client

(2) Travel from home to a temporary workplace

(3) Travel from home to a permanent workplace

• 1. 1, 2 and 3

• 1. 1 and 2 only

• 1. 1 and 3 only

• 1. 2 and 3 only

1. Sharon uses her own car for business travel. During the tax year 2023-24, she drove 15,600 miles in the performance of her duties, without any reimbursement from her employer.

2. What approved mileage allowance can Sharon claim?

• 1. £0

• 1. £3,900

• 1. £5,900

• 1. £7,020

Natalia is a director of Norxen Ltd, which has an accounting reference date of 31 March 2024.

Which TWO of the following costs will be assessable on Natalia for the tax year 2023-24?

• 1. A bonus in respect of the year ended 31 March 2023 which was paid on 30 April 2023. The bonus was voted to Natalia on 1 March 2023.

• 1. A bonus in respect of the year ended 31 March 2024 which was paid on 30 April 2024. The bonus was voted to Natalia on 1 April 2024.

• 1. Director’s fees paid on 10 April 2023 in respect of the year ended 31 March 2023.  The fees were voted to Natalia on 1 March 2023.

• 1. Director’s fees paid on 30 April 2024 in respect of the year ended 31 March 2024.  The fees were voted to Natalia on 30 March 2024.

Natalia is a director of Norxen Ltd, which has an accounting reference date of 31 March 2024.

Which TWO of the following costs will be assessable on Natalia for the tax year 2023-24?

• 1. A bonus in respect of the year ended 31 March 2023 which was paid on 30 April 2023. The bonus was voted to Natalia on 1 March 2023.

• 1. A bonus in respect of the year ended 31 March 2024 which was paid on 30 April 2024. The bonus was voted to Natalia on 1 April 2024.

• 1. Director’s fees paid on 10 April 2023 in respect of the year ended 31 March 2023.  The fees were voted to Natalia on 1 March 2023.

• 1. Director’s fees paid on 30 April 2024 in respect of the year ended 31 March 2024.  The fees were voted to Natalia on 30 March 2024.

Genna and Wayne are a married couple. In the tax year 2023/24 Genna had a salary of E5,OOO

and Wayne had property income of f40,650. They have made an election to transfer the

fixed amount of personal allowance from Genna to Wayne.

What is Wayne's income tax liability for the tax year 2023/24?

• E4,356

• E4,102

• E5,364

• None

Hana was UK resident in the tax year 2022/23. He worked full time in Egypt in the tax year

2023/24.

What is the maximum number of days which Hana can spend in the UK and be treated as

automatically not resident in the UK for the tax year 2023/24?

• 15

• 45

• 90

• 182

Which of the following will NOT cause Harper to be treated as automatically UK resident

for the tax year 2023/24?

• Harper spending 192 days in the UK during the tax year 2023/24

• Harper renting a house in the UK to live in and then occupying it (as her only home)

  throughout the tax year 2023/24

• Harper accepting a 15-month contract for a full time job in the UK on 6 April 2023

• Harper's husband living in the UK throughout the tax year 2023/24 and Harper staying

  with him when she visits the UK