ACCA F6 Chapter 4

25 Questions | By LFTC2011 | Updated: Mar 21, 2022 | Attempts: 108

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This MCQ test is regarding the ACCA F6 Taxation paper of BPP Chapter 4 "Taxable and exempt benefits: The PAYE system".

Questions and Answers

1.

Excluded employees are lower paid employees and not _____________ (with certain conditions).
- A.
  
  Executives
- B.
  
  Directors
- C.
  
  Officers
- D.
  
  Managers
2.

Lower paid employees has annual earnings of less than £_________.
- A.
  
  8,500
- B.
  
  9,500
- C.
  
  10,500
- D.
  
  11,500
3.

Employees including directors who are not excluded employees may be referred to as
- A.
  
  Directors
- B.
  
  P11D Employees
- C.
  
  P45 Employees
- D.
  
  Lower paid employees
4.

Vouchers and ______________ are taxable on all employees.
- A.
  
  Private Car
- B.
  
  Private Fuel
- C.
  
  Utilities
- D.
  
  Living accommodation
5.

The first ____ per working days of meal vouchers are exempt.
- A.
  
  15p
- B.
  
  50p
- C.
  
  75p
- D.
  
  £2
6.

Race plc pays £20,000 gross salary to WHY and a living accommodation which has annual value of £10,000 a year and cost £200,000 when it was purchased new in 2 years ago. The total charge to WHY for the benefit of living accommodation is:
- A.
  
  £4,000
- B.
  
  £5,000
- C.
  
  £14,000
- D.
  
  £15,000
7.

Race plc pays £20,000 gross salary to WHY and a living accommodation which has annual value of £10,000 a year and cost £200,000 when it was purchased new in 2 years ago. WHY pays 7,500 to Race plc for this accommodation. The total charge to WHY for the benefit of living accommodation is:
- A.
  
  £5,000
- B.
  
  £7,500
- C.
  
  £10,000
- D.
  
  £15,000
8.

There is no taxable benefit in respect of job related accommodation provided it is necessary for the proper performance of the duties or for better performance of duties or accommodation is provided due to a ________ to the employees’ security.
- A.
  
  Risk
- B.
  
  Danger
- C.
  
  Security
- D.
  
  Threat
9.

A person travelling abroad may claim private incidental expenses of not more than ____ for every night that he stays out of the UK.
- A.
  
  £5
- B.
  
  £10
- C.
  
  £15
- D.
  
  £20
10.

P11D employees are taxed on expenses related to living accommodation like heating, lighting, cleaning, repair & maintenance etc. If the accommodation is job-related, the benefits are limited to _______% of employees’ earnings.
- A.
  
  5
- B.
  
  10
- C.
  
  15
- D.
  
  20
11.

What is the taxable benefit percentage if SEE is provided with a company petrol car for his private use with CO2 emission of 155gm/km?
- A.
  
  15%
- B.
  
  19%
- C.
  
  21%
- D.
  
  25%
12.

What is the taxable benefit percentage if SEE is provided with a company petrol car for his private use with CO2 emission of 215gm/km?
- A.
  
  33%
- B.
  
  35%
- C.
  
  37%
- D.
  
  39%
13.

What is the taxable benefit percentage if SEE is provided with a company diesel car for his private use with CO2 emission of 155gm/km?
- A.
  
  18%
- B.
  
  21%
- C.
  
  24%
- D.
  
  27%
14.

What is the taxable benefit percentage if SEE is provided with a company petrol car for his private use with CO2 emission of 192gm/km?
- A.
  
  16%
- B.
  
  20%
- C.
  
  24%
- D.
  
  28%
15.

Helmet is provided with a company diesel car with CO2 emission of 139gm/km as well as fuel for private use. What will be the charge for private fuel if the list price for the car is £30,000?
- A.
  
  £6,000
- B.
  
  £30,000
- C.
  
  £3,760
- D.
  
  £2,120
16.

Van (3400kg weight; list price £20,000) is provided to BRUSH for private use and also the fuel is provided. The CO2 emission is 250 gm/km. The benefit for van and fuel will be:
- A.
  
  £3,000
- B.
  
  £3,500
- C.
  
  £7,000
- D.
  
  £13,580
17.

DEE had a loan outstanding at the beginning and end of tax year of £3,000. What will be the taxable benefit if this is an interest free loan?
- A.
  
  Nil
- B.
  
  £120
- C.
  
  £300
- D.
  
  £3,000
18.

EEE had a loan outstanding at the beginning of the tax year of £4,000. On 5^th July 2011, he re-paid all. On 5^th October, he borrowed £4,000 and on 5^th January 2011, he borrowed further £10,000. If the loan was free of interest, the taxable benefit will be __________ if average method is used.
- A.
  
  £720
- B.
  
  £480
- C.
  
  £240
- D.
  
  £120
19.

EEE had a loan outstanding at the beginning of the tax year of £4,000. On 5^th July 2011, he re-paid all. On 5^th October, he borrowed £4,000 and on 5^th January 2011, he borrowed further £10,000. If the loan was free of interest, the taxable benefit will be __________ if strict method is used.
- A.
  
  £720
- B.
  
  £480
- C.
  
  £220
- D.
  
  Nil
20.

EEE had a loan outstanding at the beginning of the tax year of £4,000. On 5^th July 2011, he re-paid all. On 5^th October, he borrowed £4,000 and on 5^th January 2011, he borrowed further £500. If the loan was free of interest, the taxable benefit will be __________ if strict method is used.
- A.
  
  £125
- B.
  
  £250
- C.
  
  £375
- D.
  
  Nil
21.

ARE was provided an electronic gadget for his personal use in 2008 when its market value was £230. At the beginning of the tax year 2011/12, the market value was £60 and towards the end, it was valued at £70. What will be the charge to his employment income in respect of this gadget?
- A.
  
  £230
- B.
  
  £70
- C.
  
  £60
- D.
  
  £46
22.

ARE was provided an electronic gadget for his personal use on 6/4/08 when its market value was £230. At the beginning of the tax year 2011/12, the market value was £60 and towards the end, it was valued at £70. The same was purchased by ARE when on 6/4/11 for £40 when its market value was £65. What will be the charge to his employment income in respect of this gadget?
- A.
  
  £70
- B.
  
  £65
- C.
  
  £52
- D.
  
  £40
23.

Additional rate taxpayers are eligible for free childcare vouchers worth £___ per week.
- A.
  
  £55
- B.
  
  £44
- C.
  
  £28
- D.
  
  £22
24.

Which of the following benefits is not exempt on all employees:
- A.
  
  First £9,000 of removal expenses
- B.
  
  Workplace parking
- C.
  
  Employer provided uniforms
- D.
  
  Cheap loans that do not exceed Â£5,000
25.

GEE has with basic personal allowance of £7,475 will have a tax code of:
- A.
  
  7L
- B.
  
  74L
- C.
  
  747L
- D.
  
  7475L