PTC Employment Income

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:25AM in AAT student discussion
Hi

Can someone fully explain the computers benefit to me. I understand it is exempt if the computer is under £2500, so is it only the value over that is a benefit? Is the first £500 of the benefit exempt too? I'm very confused, is there an example somewhere?

Also does Payroll Giving go under the allowable deduction?

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PTC Employment Income

    As far as I can remember, it's the first £500 of the benefit that is exempt. ie if the benefit is £600 then the taxable benfit is £100.

    Not sure about the £2500 thing - *rushes home to check textbook*
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PTC Employment Income

    If a computer costs £2,500 or less there is no assessable benefit. If the computer costs over that amount then just the excess of the normal benefit over £500.00 (ie20% x £2500) will be chargeable. So if your computer costs £3,000 then you calculate 20% x £3,000 = £600 minus the £500 exempt. So £100 would be an assessable benefit.
    With Payroll Giving scheme you authorise your employer to deduct (without limit) from your salary donations to an approved charity. This is an allowed deduction and your employer will operate PAYE after the donation has been deducted. So you only pay tax on your salary minus the donation you make under the payroll giving scheme.
    Watch out, however, gift aid is handled differently.
    Good luck.
    Natascha
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PTC Employment Income

    Thank you, I completely understand the computer benefit now. :D:D:D

    Don't worry I am confident on gift aid. It is like pension payments to a non work pension. The gross amount is used to increase the basic tax band and is nothing to do with employment income.

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