Hi,
I have a brain teaser that relates to 480(2017) section 158 or 14.16 'Payments for private use'.
"The amount chargeable on each employee is reduced pound for pound by the amount which the employee is required to pay, and actually pays, for private use of the van."
If an employee contributes £100 for private use within the year. What would the reduction be made against? The BIK charge? The BIK+FBIK charge? What the employee actually pays?
I am a little lost on the whole topic.
Replies (24)
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Only serious questions deserve serious replies. If you want a proper reply from an internet forum, here's a tip - don't refer to long-standing members as trolls.
Unusually for HMRC, the wording of their guidance quoted above could not be clearer. The real brain teaser here is trying to understand where the difficulty lies in interpreting those words.
Why not make up your own example?
Substituting any amount you want for "The amount chargeable" and any other (preferably smaller) amount for "the amount which the employee is required to pay"
You don't need to be qualified to compute x-y =?
I vote it reduces "what the employee actually pays".
Partly because I don't know how that would work.
Pretty obvious, I would have thought.
Employee pays £100, so the £100 reduces the payment of £100 to £nil. So the chargeable benefit is reduced by £nil.
Is that not what the legislation says?
the bar appears to be set extraordinarily low to be classed as a troll by youngsters (I assume) these days....'ask your tutor' was reasonably and appropriate...(they do have email these days I believe)....
I agree. People should make some sort of allowance when the person asking the question is clearly stupid.
Exactly what is wrong with "ask your tutor"? If you don't think that s/he is able to help, I'd find another one if I were you.
This is a site for professionals to assist, argue with, and slag off, each other. It is not - as pointed out - a homework class. I think it is you that needs to go and find someone else to bother.