Assessment 1 - Task 1.3
bethanyrowson1993
Registered Posts: 1
in Personal Tax
I feel like I am missing something in this question (which is very simple!)
Brooklyn received £8.00 per night in incidental expenses for 5 consecutive nights when working away from home in the UK. What is the taxable benefit in kind?
The answer is 40 (£8 x 5)
But I know you get tax free benefits of £5 per night, so why would £25 (£5 x 5) not be deducted from this? Making the answer £15?
Brooklyn received £8.00 per night in incidental expenses for 5 consecutive nights when working away from home in the UK. What is the taxable benefit in kind?
The answer is 40 (£8 x 5)
But I know you get tax free benefits of £5 per night, so why would £25 (£5 x 5) not be deducted from this? Making the answer £15?
0
Comments
-
If a payment is made that exceeds the limits, the whole of the payment becomes taxable and not just the excess, see EIM02730 at https://gov.uk/hmrc-internal-manuals/employment-income-manual/eim027300
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