ExpertEasy2 marksMultiple Choice
ACCA · Question 03 · Income tax and national insurance contributions
Which TWO of the following employment benefits provided to an agriculture worker are EXEMPT from income tax?
Which TWO of the following employment benefits provided to an agriculture worker are EXEMPT from income tax?
Answer options:
A.
A workplace parking space
B.
A mobile phone provided for private use
C.
A gym membership at a public leisure centre
D.
Medical insurance premiums paid by the employer
How to approach this question
Review the statutory list of exempt benefits. Workplace parking and one mobile phone are specifically exempt.
Full Answer
Under UK tax law, the provision of a workplace parking space and one mobile phone (including line rental and calls) per employee are specifically exempt from income tax. Gym memberships and medical insurance are taxable benefits.
Common mistakes
Assuming that because a mobile phone is used privately, it must be taxable.
Practice the full ACCA TX — Taxation Practice Exam 6
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