taxable benefits

lgarside
lgarside Registered Posts: 122 Dedicated contributor 🦉
in AAT Level 4 (Level 8 in Scotland)
Can someone remind me how taxable benefits are calculated. If you received say 400.00 as a taxable benefit does this get taken off your tax free allowance or does 20% of 400 (80.00) get taken off your tax free allowance.

Thanks

Comments

  • karenv
    karenv Registered Posts: 113 Dedicated contributor 🦉
    Im not sure im understanding you correctly.
    However personal allowances ( i.e.tax free earning amounts) would have to be restricted by the £400 in order to collect the sum of £80.00 in tax if the tax rate is 20%.
  • lgarside
    lgarside Registered Posts: 122 Dedicated contributor 🦉
    Thanks, so if someone had received say 400 in job seekers allowance benefit and this is a taxable benefit the 400 would be taken off next years tax free allowance, or would they adjust the remainder of this years tax free allowance?

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