personal tax question

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:10AM in AAT student discussion
I ve just got to a question where the employer pays for the subscribtion to a professional organisation. In my book it states that the value of this benefit is equal to the allowable deduction and they cancel each other out.<BR>does this mean that the fees are not included in the calculations or the tax form at all? are they just ignored? im guessing this is the case but im not sure, thanks in advance <img src="i/expressions/face-icon-small-smile.gif" border="0">

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    personal tax question

    The two do cancel each other out, and the Inland Revenue can grant a dispensation (a notice of nil liability) which allows both sides to be ignored.<BR><BR>However, if no such dispensation has been granted, the expenses must be shown twice on the tax return - as a benefit to be added to income, and an expense to be deducted.<BR><BR>For exam purposes, in the tax computation, I would suggest including the expenses twice (benefit and allowable expense) unless you are told of the dispensation - this shows the examiner that you know exactly what the position is.<BR><BR>Andrew Harrington
  • System
    System Posts: 100,534 🤖 Admin 🤖
    personal tax question

    Thank you!

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