ACCA F6 四大学工商管理学院 课件Chapter3.pptVIP

Chapter 3: Employment income 1 Employment and self employment 2 Basis of assessment for employment income 3 Allowable deductions 4 Statutory mileage allowances 5 Charitable donations under the payroll deduction scheme 1. Employment and self employment The distinction between employment and self employment is decided by looking at all the facts of the engagement. 2. Basis of assessment for employment income General earnings: = earnings + taxable non-monetary benefits benefit (chapter 4) Earnings Taxable earnings from an employment in a tax year are the general earnings received in that tax year. When are earnings received General earnings consisting of money are treated as received at the earlier of: The time when payment is made The time when a person becomes entitled to payment of the earnings In the case of directors, there are extra rules Taxable benefits (chapter 4) are generally treated as received when they are provided to the employee. The receipts basis does not apply to pension income (chapter 5), which are taxed on the amount accruing in the tax year. Net taxable earnings net taxable earnings of a tax year =Total taxable earnings - total allowable deductions notes: net taxable earnings 填列在“non-savings” Deductions cannot usually create a loss: they can only reduce the net taxable earnings to nil. 3. Allowable deductions Allowable deductions are limited to: Qualifying travel expenses Other expenses——the employee is obliged to incur and pay as holder of the employment which are incurred wholly, exclusively and necessarily in the performance of the duties of the employment 3.1 Travel expenses Tax relief is not available for an employee’s （a） normal commuting costs. (b) the journey is essentially the same as the employee’s normal journey to work. Relief is available for (a) the costs that an employee is obliged to incur in travelling in the performance of his duties or travelling to or from a place he has to attend