Home For AAT student members AQ 2013 AAT Level 4 (Level 8 in Scotland)
Current updates regarding coronavirus (Covid-19) and the precautions AAT are taking will be continually updated on the below page.

Please check this link for the latest updates:
We hope you are all safe and well and if you need us we will be here. 💚


Personal Tax - What is the difference between benefits in kind & allowable Deductions

geek84geek84 Trusted RegularMAAT Posts: 564
Hi Folks

I am studying the Personal Tax unit at the moment and can't get my head round the difference between allowable deductions and benefits in kind.

Would somebody be kind enough to explain the difference?

Or, can someone provide me with a link to a resource(s) where I could get more info on these two topics?

Thanks in advance for your responses.

Comments

  • Jo ClarkJo Clark Font Of All Knowledge Registered Posts: 2,525
    geek84 wrote: »
    Hi Folks

    I am studying the Personal Tax unit at the moment and can't get my head round the difference between allowable deductions and benefits in kind.

    Would somebody be kind enough to explain the difference?

    Or, can someone provide me with a link to a resource(s) where I could get more info on these two topics?

    Thanks in advance for your responses.

    Hello Geek

    What text book are you using to study PTX?

    You could try looking at the HMRC website or even type the two into Google and see what the definitions are that they provide... see if they are clearer than those in your text book.



    JC
    ~ An investment in knowledge always pays the best interest ~
    Benjamin Franklin
  • omega manomega man Trusted Regular Registered Posts: 283
    Benefits in kind are like things you get when you are working that are taxable such as car benefit and car fuel charge.
    Allowable deductions are for similar things but which are an allowable deduction, these could be paying for a professional organisation related to your job and also mileage allowance.
    With mileage is a good one to use as your employer might pay you over the odds for mileage but you have an allowable deduction the other way.
Sign In or Register to comment.