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SA 4538
NVQ/SVQ Level 3 in Payroll AdministrationCompleting Year-End Procedures(CYE) (2003 standards)
Friday 3 December 2004 (afternoon)
EXAMINATION
Time allowed — 3 hours plus 15 minutes’ reading time
Please complete the following information in BLOCK CAPITALS. You must give your registration number below. If you do not, your paper may not be marked.
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Approved Assessment Centre Code
Approved Assessment Centre Name.........................................................................................................................
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© AAT
Do NOT open this paper until instructed to do so by the Supervisor.
Important:
This examination paper is in two sections. To be successful you will need to showcompetence in both sections, so you should attempt and aim to complete every task in eachsection.
We recommend that you use the 15 minutes’ reading time to study the examination paperfully and carefully so that you understand what to do for each task. However, you maybegin to write your answers within the reading time, if you wish.
You may not use programmable calculators or dictionaries in the examination.
For Assessor’s use only
SECTION 1
SECTION 2
TOTAL
TOTAL
CYE
Desk number ..............................
Date ................................................
TASK 1.1 TASK 1.2 TASK 1.3
TASK 2.1 TASK 2.2 TASK 2.3 TASK 2.4 TASK 2.5
TASK 2.6 TASK 2.7 TASK 2.8 TASK 2.9 TASK 2.10
2
Glossary of Terms
COMP Contracted Out Money Purchase
ET Earnings Threshold for National Insurance Contributions
GAYE Give As You Earn, sometimes known as Payroll Giving or Charitable Giving
LEL Lower Earnings Limit for National Insurance Contributions
NIC National Insurance Contribution
SMP Statutory Maternity Pay
SAP Statutory Adoption Pay
SPP Statutory Paternity Pay
SSP Statutory Sick Pay
UEL Upper Earnings Limit for National Insurance Contributions
3
This examination paper is in TWO sections.
Section 1 3 Operational Tasks
Section 2 10 Short Answer Questions
You have to show competence in BOTH sections.
You should therefore attempt and aim to complete EVERY task in EACH section.
You should spend about 130 minutes on Section 1 and about 50 minutes on Section 2.
There is blank space for workings on pages 20, 26 and 27, but you should include allessential workings within your answer where appropriate.
For abbreviations used, please refer to the glossary on page 2.
INTRODUCTION
Both sections relate to the company described below.
• You are the Payroll Officer for
Star Holdings LtdUnit 7Queens CentreAldershotHantsGU17 0AJ
• The company has a COMP pension scheme in operation.
• The Tax Office for the company is in Portsmouth and the reference is P60/815.
This page is perforated. You may remove it for easy reference.
4
SECTION 1 – OPERATIONAL TASKS
You should spend about 130 minutes on this section.
DATA
The output below is an extract of some of the final payroll records for the tax year 2003/2004.
AidanTeirnan
Pamela Savoy
As-ashaMagiet
Spare forcandidate’s use
Final Tax Code K175 461L Wk1 374LDate of starting 23/6/1993 12/1/2004 21/10/1989Date of leaving 8/8/2003National Insurance No. PN426954A WZ271948D SY548976C
£ £ £ £Gross pay for yearincluding SSP, SMP andprevious employment
42,875.23 21,881.71 5,808.42
Pay from previousemployment Nil 16,370.97 Nil
Pension SchemeContributions 2,143.76 ,275.37 ,227.13
GAYE for year ,900.00 Nil NilTax deducted for yearincluding tax fromprevious employment
10,910.80 3,372.71 ,786.17
Tax in previousemployment Nil 2,534.16 Nil
Earnings at the LEL(where earnings reach orexceed the LEL)
4,008.00 1,002.00 1,670.00
Earnings between theLEL and the ET ,612.00 ,153.00 ,255.00
Earnings between theET and the UEL 26,328.00 4,351.00 3,873.00
Employee NIC in theyear 2,584.31 ,407.11 ,360.91
Employer NIC in theyear 4,627.24 ,512.59 ,455.65
Student Loan payments Nil ,269.00 NilSSP paid in the year ,218.79 Nil NilSMP paid in the year Nil Nil 1,000.00SMP reclaimed Nil Nil ,920.00SAP paid in the year Nil Nil NilSAP reclaimed Nil Nil NilSPP paid in the year Nil Nil NilSPP reclaimed Nil Nil Nil
This page is perforated. You may remove it for easy reference.
5
Task 1.1
Using the information given on page 4, prepare the end of year returns form P14 for eachemployee for the tax year 2003/2004. Use the P14 forms on pages 6, 7 and 8.
Note: Star Holdings Ltd is not able to recover any SSP.
6
Insert copy of 2002/2003 P14 form here
Plea
se u
se b
lack
ink
and
wri
te fi
rmly
to
ensu
re y
our
entr
ies
are
clea
ron
all
thre
e sh
eets
. £ s
pace
s sh
ould
be
fille
d fr
om t
he r
ight
-han
d si
de.
For
help
to
fill i
n th
is fo
rm,
see
Empl
oyer
's H
elp
Book
, E10
20
03
-04
P1
4 E
nd
of
Yea
r Su
mm
ary
004
Inla
nd R
even
ue o
ffice
nam
e E
mp
loye
r's P
AYE
refe
renc
e
Surn
ame
Firs
t tw
o fo
rena
mes
Wor
ks/p
ayro
ll no
. etc
Day
Mon
th
Yea
r
D D
M M
Y Y
For
empl
oyer
's us
e
Pos
tcod
e
Emp
loye
e's
priv
ate
addr
ess
(if k
now
n) . . .
£p
Tax
ded
ucte
d ' ' 'Fo
r of
ficia
l use
Tax
Year
to
5 A
pri
l
Exp
ense
s p
aym
ents
an
db
enef
its
pai
d t
od
irec
tors
an
d e
mp
loye
es:
Com
plet
e fo
rm P
11D
or
P9D
if ap
prop
riate
and
pro
vide
a co
py o
f the
info
rmat
ion
to y
our
empl
oyee
by
6 Ju
ly.
See
Empl
oyer
's Fu
rthe
r G
uide
to P
AYE
and
NIC
s, C
WG
2,fo
r m
ore
deta
ils.
Your
nam
e an
d ad
dres
s as
em
plo
yer
Sex
Y Y
Please detach sheets and make separate bundles of National Insurance and Tax copies before despatch
S S S S
In p
revi
ous
emp
loym
ent(
s)
.'
£p
Emp
loye
e's
Wid
ows
& O
rpha
ns/L
ife A
ssur
ance
cont
ribut
ions
in t
his
emp
loym
ent
Fin
alta
x co
de
Dat
e o
f b
irth
in fi
gure
s (if
kno
wn)
'M' –
mal
e,'F
' – fe
mal
eN
atio
nal
Insu
ran
cen
umb
er
Emp
loye
e's
det
ails
Pay
and
Inco
me
Tax
det
ails
Day
Mon
th
Year
M M
D D
Y Y
M M
D D
Y Y
Y Y
Y Y
Dat
e of
leav
ing
if du
ring
tax
year
to 5
Ap
ril 2
004
Dat
e of
sta
rtin
gif
durin
g ta
x ye
arto
5 A
pril
200
4
In t
his
emp
loym
ent
Tota
l for
yea
r
' .£
p
'
£
Ente
r 'R
' in
this
box
ifne
t re
fund
Stud
ent
Loan
Ded
ucti
on
sin
thi
s em
ploy
men
t (w
hole
£s
only
)Fr
om c
ol.1
j on
P11
Tax
Cre
dit
s in
thi
s em
ploy
men
tFr
om c
ol.9
on
P11
2 0
0 4
Sche
me
Con
trac
ted-
out
Num
ber
(For
Con
trac
ted-
out
Mon
ey P
urch
ase
sche
mes
OR
Con
trac
ted-
out
Mon
eyPu
rcha
se S
take
hold
er P
ensi
onsc
hem
es o
nly)
P14(
Man
ual)
(200
3-04
)N
atio
nal
Insu
ran
ce c
op
yTo
Inla
nd
Rev
enue
Paym
ent
in W
eek
53: i
f inc
lude
din
Pay
and
Tax
tot
als,
ent
er'5
3', '
54' o
r '5
6' h
ere
(See
Em
ploy
er's
Furt
her
Gui
deto
PAY
E an
d N
ICs,
CW
G2)
''
''
''
''
NIC
tabl
ele
tter
1a1c
££
£Fr
om c
ol.1
a on
P11
From
col
.1b
on P
11Fr
om c
ol.1
c on
P11
From
col
.1e
on P
11
Nat
ion
al In
sura
nce
co
ntr
ibut
ion
s in
th
is e
mp
loym
ent
Emp
loye
e's
cont
ribut
ions
due
on a
ll ea
rnin
gs a
bove
the
ET
' ' 'St
atut
ory
pay
men
ts in
th
is e
mp
loym
ent
'
'.
'.
'.
'.
1e£
p
. . .
£p
Pay ' ' '
' ' '
' ' '
1b
If am
ount
inco
l.1d
is a
min
us a
mou
nt,
ente
r 'R
' her
e
''
.
''
.
''
.
''
.
1d£
pFr
om c
ol.1
d on
P11
Tota
l of e
mp
loye
e's
and
emp
loye
r's c
ontr
ibut
ions
( N
ote:
LEL
= L
ower
Ear
ning
s Li
mit
, ET
= E
arni
ngs
Thr e
shol
d, U
EL =
Upp
er E
arni
ngs
Lim
it)
Earn
ings
abo
veth
e ET
, up
to
and
incl
udin
g th
e U
EL(w
hole
£s
only
)
Earn
ings
abo
ve t
heLE
L, u
p t
o an
din
clud
ing
the
ET(w
hole
£s
only
)
Earn
ings
at
the
LEL
(whe
re e
arni
ngs
are
equa
l to
or e
xcee
dth
e LE
L)(w
hole
£s
only
)
�
�
004
''
1i.
£p
.£
p1h
1f.
£p
1g
''
.£
pSt
atut
ory
Ado
ptio
n Pa
y (S
AP)
Stat
utor
y M
ater
nity
Pay
(SM
P)St
atut
ory
Pate
rnity
Pay
(SP
P)St
atut
ory
Sick
Pay
(SS
P)
BS11
/02
STA
R H
OLD
INGS
LTD
UN
IT 7
, QU
EEN
S CE
NTR
EA
LDER
SHO
TH
AN
TS G
U17
0A
J
15 P
AYR
OLL
WA
YN
EWBU
RYBE
RKS
BR
16
AB
PN
42
69
54
A0
21
11
96
0M
TE
IR
NA
N
AI
DA
N
PORT
SMO
UTH
P6
08
15
7
Insert copy of 2002/2003 P14 form here
P14(
Man
ual)
(200
304
)p
yTo
Inla
nd
Rev
enue
/
Plea
se u
se b
lack
ink
and
wri
te fi
rmly
to
ensu
re y
our
entr
ies
are
clea
ron
all
thre
e sh
eets
. £ s
pace
s sh
ould
be
fille
d fr
om t
he r
ight
-han
d si
de.
For
help
to
fill i
n th
is fo
rm,
see
Empl
oyer
's H
elp
Book
, E10
20
03
-04
P1
4 E
nd
of
Yea
r Su
mm
ary
004
Inla
nd R
even
ue o
ffice
nam
e E
mp
loye
r's P
AYE
refe
renc
e
Surn
ame
Firs
t tw
o fo
rena
mes
Wor
ks/p
ayro
ll no
. etc
Day
Mon
th
Yea
r
D D
M M
Y Y
For
empl
oyer
's us
e
Pos
tcod
e
Emp
loye
e's
priv
ate
addr
ess
(if k
now
n) . . .
£p
Tax
ded
ucte
d ' ' 'Fo
r of
ficia
l use
Tax
Year
to
5 A
pri
l
Exp
ense
s p
aym
ents
an
db
enef
its
pai
d t
od
irec
tors
an
d e
mp
loye
es:
Com
plet
e fo
rm P
11D
or
P9D
if ap
prop
riate
and
pro
vide
a co
py o
f the
info
rmat
ion
to y
our
empl
oyee
by
6 Ju
ly.
See
Empl
oyer
's Fu
rthe
r G
uide
to P
AYE
and
NIC
s, C
WG
2,fo
r m
ore
deta
ils.
Your
nam
e an
d ad
dres
s as
em
plo
yer
Sex
Y Y
Please detach sheets and make separate bundles of National Insurance and Tax copies before despatch
S S S S
In p
revi
ous
emp
loym
ent(
s)
.'
£p
Emp
loye
e's
Wid
ows
& O
rpha
ns/L
ife A
ssur
ance
cont
ribut
ions
in t
his
emp
loym
ent
Fin
alta
x co
de
Dat
e o
f b
irth
in fi
gure
s (if
kno
wn)
'M' –
mal
e,'F
' – fe
mal
eN
atio
nal
Insu
ran
cen
umb
er
Emp
loye
e's
det
ails
Pay
and
Inco
me
Tax
det
ails
Day
Mon
th
Year
M M
D D
Y Y
M M
D D
Y Y
Y Y
Y Y
Dat
e of
leav
ing
if du
ring
tax
year
to 5
Ap
ril 2
004
Dat
e of
sta
rtin
gif
durin
g ta
x ye
arto
5 A
pril
200
4
In t
his
emp
loym
ent
Tota
l for
yea
r
' .£
p
'
£
Ente
r 'R
' in
this
box
ifne
t re
fund
Stud
ent
Loan
Ded
ucti
on
sin
thi
s em
ploy
men
t (w
hole
£s
only
)Fr
om c
ol.1
j on
P11
Tax
Cre
dit
s in
thi
s em
ploy
men
tFr
om c
ol.9
on
P11
2 0
0 4
Sche
me
Con
trac
ted-
out
Num
ber
(For
Con
trac
ted-
out
Mon
ey P
urch
ase
sche
mes
OR
Con
trac
ted-
out
Mon
eyPu
rcha
se S
take
hold
er P
ensi
onsc
hem
es o
nly)
P14(
Man
ual)
(200
3-04
)N
atio
nal
Insu
ran
ce c
op
yTo
Inla
nd
Rev
enue
Paym
ent
in W
eek
53: i
f inc
lude
din
Pay
and
Tax
tot
als,
ent
er'5
3', '
54' o
r '5
6' h
ere
(See
Em
ploy
er's
Furt
her
Gui
deto
PAY
E an
d N
ICs,
CW
G2)
''
''
''
''
NIC
tabl
ele
tter
1a1c
££
£Fr
om c
ol.1
a on
P11
From
col
.1b
on P
11Fr
om c
ol.1
c on
P11
From
col
.1e
on P
11
Nat
ion
al In
sura
nce
co
ntr
ibut
ion
s in
th
is e
mp
loym
ent
Emp
loye
e's
cont
ribut
ions
due
on a
ll ea
rnin
gs a
bove
the
ET
' ' 'St
atut
ory
pay
men
ts in
th
is e
mp
loym
ent
'
'.
'.
'.
'.
1e£
p
. . .
£p
Pay ' ' '
' ' '
' ' '
1b
If am
ount
inco
l.1d
is a
min
us a
mou
nt,
ente
r 'R
' her
e
''
.
''
.
''
.
''
.
1d£
pFr
om c
ol.1
d on
P11
Tota
l of e
mp
loye
e's
and
emp
loye
r's c
ontr
ibut
ions
( N
ote:
LEL
= L
ower
Ear
ning
s Li
mit
, ET
= E
arni
ngs
Thr e
shol
d, U
EL =
Upp
er E
arni
ngs
Lim
it)
Earn
ings
abo
veth
e ET
, up
to
and
incl
udin
g th
e U
EL(w
hole
£s
only
)
Earn
ings
abo
ve t
heLE
L, u
p t
o an
din
clud
ing
the
ET(w
hole
£s
only
)
Earn
ings
at
the
LEL
(whe
re e
arni
ngs
are
equa
l to
or e
xcee
dth
e LE
L)(w
hole
£s
only
)
�
�
004
''
1i.
£p
.£
p1h
1f.
£p
1g
''
.£
pSt
atut
ory
Ado
ptio
n Pa
y (S
AP)
Stat
utor
y M
ater
nity
Pay
(SM
P)St
atut
ory
Pate
rnity
Pay
(SP
P)St
atut
ory
Sick
Pay
(SS
P)
BS11
/02
WZ
27
19
48
D0
30
21
98
2F
SA
VO
Y
PA
ME
LA
46 Y
EAR
END
STR
EET
REA
DIN
GBE
RKS
RD
72
AC
STA
R H
OLD
INGS
LTD
UN
IT 7
, QU
EEN
S CE
NTR
EA
LDER
SHO
TH
AN
TS G
U17
0A
J
PORT
SMO
UTH
P6
08
15
8
Insert copy of 2002/2003 P14 form here
Plea
se u
se b
lack
ink
and
wri
te fi
rmly
to
ensu
re y
our
entr
ies
are
clea
ron
all
thre
e sh
eets
. £ s
pace
s sh
ould
be
fille
d fr
om t
he r
ight
-han
d si
de.
For
help
to
fill i
n th
is fo
rm,
see
Empl
oyer
's H
elp
Book
, E10
20
03
-04
P1
4 E
nd
of
Yea
r Su
mm
ary
004
Inla
nd R
even
ue o
ffice
nam
e E
mp
loye
r's P
AYE
refe
renc
e
Surn
ame
Firs
t tw
o fo
rena
mes
Wor
ks/p
ayro
ll no
. etc
Day
Mon
th
Yea
r
D D
M M
Y Y
For
empl
oyer
's us
e
Pos
tcod
e
Emp
loye
e's
priv
ate
addr
ess
(if k
now
n) . . .
£p
Tax
ded
ucte
d ' ' 'Fo
r of
ficia
l use
Tax
Year
to
5 A
pri
l
Exp
ense
s p
aym
ents
an
db
enef
its
pai
d t
od
irec
tors
an
d e
mp
loye
es:
Com
plet
e fo
rm P
11D
or
P9D
if ap
prop
riate
and
pro
vide
a co
py o
f the
info
rmat
ion
to y
our
empl
oyee
by
6 Ju
ly.
See
Empl
oyer
's Fu
rthe
r G
uide
to P
AYE
and
NIC
s, C
WG
2,fo
r m
ore
deta
ils.
Your
nam
e an
d ad
dres
s as
em
plo
yer
Sex
Y Y
Please detach sheets and make separate bundles of National Insurance and Tax copies before despatch
S S S S
In p
revi
ous
emp
loym
ent(
s)
.'
£p
Emp
loye
e's
Wid
ows
& O
rpha
ns/L
ife A
ssur
ance
cont
ribut
ions
in t
his
emp
loym
ent
Fin
alta
x co
de
Dat
e o
f b
irth
in fi
gure
s (if
kno
wn)
'M' –
mal
e,'F
' – fe
mal
eN
atio
nal
Insu
ran
cen
umb
er
Emp
loye
e's
det
ails
Pay
and
Inco
me
Tax
det
ails
Day
Mon
th
Year
M M
D D
Y Y
M M
D D
Y Y
Y Y
Y Y
Dat
e of
leav
ing
if du
ring
tax
year
to 5
Ap
ril 2
004
Dat
e of
sta
rtin
gif
durin
g ta
x ye
arto
5 A
pril
200
4
In t
his
emp
loym
ent
Tota
l for
yea
r
' .£
p
'
£
Ente
r 'R
' in
this
box
ifne
t re
fund
Stud
ent
Loan
Ded
ucti
on
sin
thi
s em
ploy
men
t (w
hole
£s
only
)Fr
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Task 1.2
Using the information given on page 4, complete the details in the summary section of theextract of Form P35 for the tax year 2003/2004. Use the form P35 on page 10.
Note: Star Holdings Ltd cannot claim back any of its SSP.
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Insert copy of form 2002/2003 P35 here
20,832 33
11
DATA
Dominick D’Souza is a salesman for Star Holdings Ltd. During the year 2003/2004 he enjoyedthe following benefits in addition to his salary and had other transactions that now need to betaken into account.
1. He used a company car on both company business and for personal use. The details are asfollows:
• The car was a Vauxhall Vectra 2.7 V6.
• The petrol engine has a capacity of 2695 c.c.
• It cost £21,995 new when first registered on 6 March 2003, and was supplied toDominick on that day.
• Dominick paid the full cost of £500 to upgrade the stereo system.
• The CO2 rating for the car is 224.
2. The company has a Private Medical Plan with individually calculated premiums. The totalpaid by the company for Dominick during the tax year was £1,432.00.
3. Dominick used the company credit card to pay for the stereo upgrade of £500. This tookplace during the tax year and he repaid the amount to the company.
This page is perforated. You may remove it for easy reference.
12
THIS PAGE IS INTENTIONALLY BLANK
13
Task 1.3
(a) Calculate the benefit in kind values of the relevant items on page 11 using the P11Dworking sheets on pages 14 - 17.
(b) Complete Dominick D’Souza’s P11D on pages 18 - 19.
P11D Working Sheet 2 Car and Car fuel benefit 2003-04
Note to employerYou do not have to use this form but you may find it a usefulway to calculate the cash equivalent for each car made availableto a director or an employee who earned at a rate of £8,500 ayear or more during the year 2003-04 (that is 6 April 2003 to 5 April 2004).
A separate form is needed for each car provided to the directoror employee during 2003-04.
Read the P11D Guide before you complete this form. It refers toparagraphs in booklet 480(2004).
You are advised to keep a copy of each completed workingsheet as it could help you to deal with enquiries. You do nothave to give a copy of the completed working sheet to thedirector or employee, or to the Inland Revenue office. But you must fill in forms P11D and P11D(b) ‘Return of Class 1A National Insurance contributions’ whether or not you use this formto calculate car and car fuel benefits
The term employee is used to cover both directors and employeesthroughout the rest of this form.
Employer’s detailsEmployer’s name
Employer’s PAYE reference
The carMake of car available to employee Model
Date the car was first registered
Was this the only car made available to the employee � Yes No
If ‘No’ please make sure that working sheets are completed for each car made available to the employee in 2003-04
If more than one working sheet 2 is completed for this employee, enter the number of sheets here
List price of the car
Complete box A as follows• enter the list price of the car as published by its manufacturer, importer or distributor• if the car had no list price when it was first registered you need to enter the notional price. That is, the price which might
reasonably be expected to be its list price on that date if the car’s manufacturer, importer or distributor had published a list price for an equivalent car for a single retail sale in the UK
• if the car is a classic car, enter the price that the car might reasonably be expected to fetch if you sold it on the open market on 5 April 2004. If the car was unavailable to the employee on 5 April 2004 then use the last day in the tax year 2003-04 that it was available to the employee. For this purpose, assume that all the qualifying accessories available on the car are included in the sale. A classic car is one which– is at least 15 years old on 5 April 2004– has a market value of at least £15,000, and– has a market value which is higher than the original list or notional price (including accessories).
Price of the car including standard accessories
List Accessories
Price of all accessories see P11D Guide and paragraphs 12.7-12.14 of booklet 480(2004)
Capital contributions
Capital contributions made by the employee towards the cost of the car or the accessories max £5,000
The price used to calculate the car benefit charge for 2003-04
This box is subject to a maximum of £80,000
Employee’s detailsEmployee’s name
Works number or department National Insurance number
P11D WS2 (2004) BS11/031
1
£A
£B
£C
£D
2
3
A + B
4
£EC minus D
/ /
This form has been updated to conform to the method of calculating car benefit in the Income Tax (Earnings and Pensions) Act 2003
Star Holdings Ltd
P60/815
Vauxhall
06 03 2003
Vectra 2.7 V6
Dominick D’Souza
Cars registered on or after 1 January 1998 with an approved CO2 emissions figure
Note: Fuel type E (electric) cars do not have an approved CO2 emissions figure. Go straight to section 5b
Approved CO2 emissions figure in box F, rounded down to the next lowest 5g/km, for example 185
Stage 1 - using the ready reckoner below, work out from the figure in box G the percentage to enter in box H • use column 1 for fuel types B,C,H,L and P• use column 2 for fuel type D.
Ready reckoner of car benefit percentages
Stage 2 - calculate standard discounts for alternative fuel/power types fuel type letters H,B and C only• fuel type H - insert 2% in box J• fuel types B or C - insert 1% in box J
Stage 3 - calculate any additional discount fuel type letters H and B only• if the figure in box F is more than 135, insert 0% in box L• if the figure in box F is 135 or less, then
155 minus box F
box K divided by 20, rounded down to the next whole number
Total discounts from stages 2 and 3
Appropriate percentageGo straight to section 6 - do not complete sections 5b or 5c
Calculating the appropriate percentage
The appropriate percentage depends on when the car was first registered, the type of fuel used and whether it has an approved CO2 emissions figure.
Approved CO2 emissions figure, if the car has one unrounded, for example 188
Enter the key letter (B,C,D,E,H,L or P) for the car’s fuel or power type from the table below
5
5a
%J
2
Next step
• For cars registered on or after 1 January 1998 with an approved CO2 emissions figure, Go to section 5a• For cars registered on or after 1 January 1998 without an approved CO2 emissions figure, Go to section 5b• For cars registered before 1 January 1998, Go to section 5c.
Key letter Fuel or power type description
PetrolDiesel not approved to Euro IV emissions standardDiesel approved to Euro IV emissions standardElectric OnlyHybrid electric (combination of petrol engine and electric motor)Gas only or bi-fuel car with approved CO2 emissions figure for Gas when first registeredConversion and all other bi-fuel cars with approved CO2 emissionsfigure for Petrol only when first registered
PDLEHB
C
*These are the minimum and maximum CO2 values for which different percentages apply. Use these values if the figure at box G is less than the minimum or greater than the maximum.
CO2emissions(g/km)
155* 15 18 190 22 25 225 29 32160 16 19 195 23 26 230 30 33165 17 20 200 24 27 235 31 34170 18 21 205 25 28 240 32 35175 19 22 210 26 29 245 33 35180 20 23 215 27 30 250 34 35185 21 24 220 28 31 255* 35 35
Column 1
(%)
Column 2
(%)
CO2emissions(g/km)
Column 1
(%)
Column 2
(%)
CO2emissions(g/km)
Column 1
(%)
Column 2
(%)
G g/km
K
%L
MJ + L
NH minus M
%
%2
%H
F g/km
3
Cars registered on or after 1 January 1998 without an approved CO2 emissions figure
Stage 1 - using the table below, work out the percentage to enter in box H • use column 1 for fuel types B,C,H,L and P• use column 2 for fuel type D• for fuel type E, insert 15%.
Stage 2 - calculate standard discounts for alternative fuel/power types fuel type letters H,B,C and E only• fuel type E - insert 6% in box J• fuel type H - insert 2% in box J• fuel types B or C - insert 1% in box J
Appropriate percentageGo straight to section 6 - do not complete sections 5c
All cars registered before 1 January 1998
Enter the engine size, then work out the percentage to enter in box N
Appropriate percentage
Calculate the car benefit for a full year
Ignore any decimals when completing box P
Make any deductions for days the car was unavailable
If the car was available to the employee for the whole of the tax year, put the figure in box P into box S. If not, state the period for which the car was available
from to
Total days for which the car was unavailable see P11D Guide and booklet 480(2004)
Deduction for unavailability round up to next whole number
Car benefit for the period the car was available
5b
%H
Engine size of car (cc)
0 - 1400
1401 - 2000
over 2000
all rotary engines
15
25
35
35
18
28
35
35
Column 1%
Column 2%
%J
NH minus J
%
5c
Engine size of car (cc)
0 - 1400
1401 - 2000
over 2000
all rotary engines
15
22
32
32
Percentage
%N
6
£PE x N
7
/ /
Q
£R(P x Q)/366
£SP minus R
/ /
cc
4
Make any deductions for payments for private use
Enter any required payments made for private use of the car in the year
Car benefit charge for 2003-04 for this carRound down box U to the next whole number and enter the figure in box 1.16 in section F of form P11D. If the employee had more than one car available in the year, add together all the figures at box U on each working sheet, then transfer the total to box 1.16 in section F of form P11D.
Calculate the car fuel benefit charge if appropriate - see P11D Guide
Car fuel benefit charge for the whole of this tax year
Calculate any required deductionsDays the car was unavailable from section 7
If the provision of fuel was withdrawn and not reinstated later in the year, enter the date and complete box W, otherwise, go to box X
Date the provision of fuel was withdrawn if applicable
Additional days after fuel was withdrawn not already counted in box Qdo not include the same day in both box Q and box W
Total days for which no car fuel benefit charge applies
Deduction round up to next whole number
Car fuel benefit charge for 2003-04 for this carEnter the figure at box Z in box 1.17 in section F of the form P11D.If the employee had more than one car available in the year, add together all the figures at box Zon each working sheet, then transfer the total to box 1.17 in section F of form P11D.
8
£T
£US minus T
£V£14,400 x N
Q
W
XQ + W
9
£Y(V x X)/366
£ZV minus Y
/ /
P11D EXPENSES AND BENEFITS 2003-04Note to employerComplete this return for a director, or an employee who earned at a rate of £8,500a year or more during the year 6 April 2003 to 5 April 2004. Do not includeexpenses and benefits covered by a dispensation or PAYE settlement agreement.Read the P11D Guide and Booklet 480, Chapter 24, before you complete theform. You must give a copy of this information to the director or employee by6 July 2004. The term employee is used to cover both directors and employeesthroughout the rest of this form. Send the completed P11D and form P11D(b)to the Inland Revenue office by 6 July 2004.
Note to employeeYour employer has filled in this form. Keep it in a safe place as you may notbe able to get a duplicate. You will need it for your tax records and tocomplete your 2003-04 Tax Return if you get one. Your tax code may needto be adjusted to take account of the information given on this P11D. Thebox numbers on this P11D have the same numbering as the EmploymentPages of the Tax Return, for example, 1.12. Include the total figures in thecorresponding box on the Tax Return, unless you think some other figure ismore appropriate.
Employee’s detailsEmployee’s name
Works number /department National Insurance number
If a directortick here �
P11D
(200
4)BS
11/
03
Employer’s detailsEmployer’s name
PAYE tax reference
A
B
£ £
1.12 £
1.12 £
C
£ £ 1.13 £
D
E
/ /
Cash equivalent
Cash equivalent
£
£
£
£
£
/ /
£
£
£
£
£
Employers pay Class 1A National Insurance contributions on most benefits. These are shown in boxes which are brown and have a 1A indicator
F
Cash equivalent
1.12 £ 1A
1.14 £ 1A
1.16 £ 1A
1.17 £ 1A
Gross amount
Amount made good orfrom which tax deducted
Amount made good orfrom which tax deducted
/ / / // / / /
Assets transferred (cars, property, goods or other assets)
Description of asset – =
Payments made on behalf of employee
Description of payment
Tax on notional payments not borne by employee within 30 days of receipt of each notional payment
Vouchers or credit cards
Value of vouchers and payments made using credit cards or tokens – =
Living accommodation
Cash equivalent of accommodation provided for employee, or his/ her family or household
Mileage allowance and passenger payments
Amount of car and mileage allowances paid for employee’s own vehicle, and passenger payments, in excessof maximum exempt amounts (See P11D Guide for 2003-04 exempt rates)Cars and car fuel If more than two cars were made available, either at the same time or in succession, please give details on a separate sheet
Car 1 Car 2
Make and Model
Date first registered
Approved CO2 emissions figure for carsregistered on or after 1 January 1998 Tick box
if the car does not have an approved CO2 figure g/km g/km
Engine size cc ccType of fuel or power used Please use the key
letter shown in the P11D Guide (2004)
Dates car was available From to From toOnly enter a ‘from’ or ‘to’ date if the car was first made
available and/or ceased to be available in 2003-04List price of car Including car and standardaccessories only: if there is no list price, or if it is aclassic car, employers see booklet 480; employeessee leaflet IR172Accessories All non-standard accessories,see P11D Guide
Capital contributions (maximum £5,000)the employee made towards the cost ofcar or accessoriesAmount paid by employee for private useof the car
Cash equivalent of each car
Total cash equivalent of all cars availablein 2003-04
Cash equivalent of fuel for each car
Date free fuel was withdrawn (applies to all cars)Tick if reinstated in year (see P11D Guide)
Total cash equivalent of fuel for all cars available in 2003-04
See P11D Guide fordetails of cars that haveno approved C02 figure
See P11D Guide fordetails of cars that haveno approved C02 figure
1.15 £
Taxable amount
Cost/ Market value
£ £
/ /
Star Holdings Ltd
P60/815
Dominick D’Souza
Vauxhall Vectra 2.7 V 6
06 03 03
G
H
£ £
£
£
£
£
/ /
£
£
£
£
/ /
£ £
Cost to you Cash equivalent I
J
£ £
Cost to you Cash equivalentK
Annual value plusexpenses incurred Cash equivalent
L
M
N
Cost to you
£ £
Taxable paymentCost to youO
£ £ 1.23 £
£ £ 1.23 £
£ £ 1.23 £
£ £ 1.23 £
£ £ 1.23 £
£ £ 1.23 £
Tax paid
1.18 £ 1A
1.19 £ 1A1.19 £ 1A
1.21 £ 1A
1.22 £ 1A
1.22 £ 1A
/ / / /
£ £ 1.22 £
1.22 £ 1A
Vans
Cash equivalent of all vans made available for private use
Interest-free and low interest loansIf the total amount outstanding on all loans does not exceed £5,000 at any time in the year, there is no need for details in this section.
Loan 1 Loan 2
Number of joint borrowers (if applicable)
Amount outstanding at 5 April 2003 or at date loan was made if later
Amount outstanding at 5 April 2004 or at date loan was discharged if earlier
Maximum amount outstanding at any time in the year
Total amount of interest paid by the borrower in 2003-04– enter “NIL” if none was paid
Date loan was made in 2003-04 if applicable
Date loan was discharged in 2003-04 if applicable
Cash equivalent of loans after deducting any interest paid by the borrower
Private medical treatment or insurance
Private medical treatment or insurance – =
Qualifying relocation expenses payments and benefitsNon-qualifying benefits and expenses go in N and O below
Excess over £8,000 of all qualifying relocation expenses payments and benefits for each move
Services supplied
Services supplied to the employee – =
Assets placed at the employee’s disposal
Description of asset – =
SharesTick the box if during the year there have been share-related benefitsfor the employee
Other items (including subscriptions and professional fees)
Description of otheritems – =
Description of otheritems – =
Income tax paid but not deducted from director’s remuneration
Expenses payments made to, or on behalf of, the employee
Travelling and subsistence payments (except mileage allowancepayments for employee’s own car - see box E) – =
Entertainment (trading organisations read P11D Guide and thenenter a tick or a cross as appropriate here) – =
General expenses allowance for business travel – =
Payments for use of home telephone – =
Non-qualifying relocation expenses (those not shown in sections J or N) – =
Description of other expenses – =
Amount made good orfrom which tax deducted
Amount made good orfrom which tax deducted
Amount made good orfrom which tax deducted
Amount made good orfrom which tax deducted
Amount made good orfrom which tax deducted
Cash equivalent
1A1.22 £
1.22 £
20
You may use this page for your workings.
21
SECTION 2 – SHORT ANSWER QUESTIONS
You should spend about 50 minutes on this Section.
Write in the space provided OR circle the correct answer. Do not show your choice inany other way.
Aim to answer all the questions on pages 21 - 25.
Task 2.1
One of the company’s sales staff decides to borrow money from the company rather than havea company car. The company lends him £10,000 interest free in April 2003 and he agrees torepay the loan at £275 every month starting in April 2003.
The official rate of interest for 2003/2004 was 5% and the Class 1A NIC rate was 12.8%.
Note: You may wish to refer to the P11D at Section H to calculate your answer.
(a) What is the benefit in kind value to be reported on the 2003/2004 P11D?
£500 £335 £417.50
(b) What is the Class 1A amount to be paid?
£53.44 £64 £42.88
(c) By what date must the Class 1A NIC be paid to the Collector of Taxes?
19 July 19 April 19 May
PLEASE TURN OVER FOR TASK 2.2
22
Task 2.2
The Chief Accountant decides to take her staff out to lunch to thank them for completing allthe company accounts on time. It costs £250 for 10 staff and the company pays the bill.
(a) What are the Tax and NI implications for the staff?
(b) What reporting implications are there for the company?
(c) By what date must the tax and NIC implications be reported to the Inland Revenue?
Task 2.3
An employee is presented with a gift for her 20 years of continuous service with the company.The company pays £300 for a gold bracelet.
(a) Is the value of the gift reportable to the Inland Revenue?
Yes No
(b) Explain your answer.
23
Task 2.4
The company has a strict Expenses Reimbursement policy. Employees have to submit detailedclaim forms and show original receipts before they are repaid. Despite this, the company hasbeen advised to obtain an Inland Revenue ‘dispensation’ for expenses.
(a) What is a ‘dispensation’?
(b) What happens if a dispensation is not obtained?
(c) What extra precautions must be taken if an expenses ‘advance’ is paid out to anemployee?
24
Task 2.5
One of the Directors complains that a P11D Return of Expenses and Benefits has beencompleted and submitted for him even though the total value of his fees was only £3,500 andof his benefits only £1,000. He wants you to correct this mistake.
(a) Has a mistake been made?
Yes No
(b) Explain your answer.
Task 2.6
A company offers free travel by company vehicle to all its employees to and from work. Is thisa taxable benefit?
Yes No
Task 2.7
State THREE steps you would follow in calculating the benefit in kind value of acompany asset purchased by an employee during the tax year.
1.
2.
3.
25
Task 2.8
You are calculating the £8,500 limit for the P11D/P9D process. Are the values of anydispensations or PAYE Settlement Agreements deducted or not deducted from the total of pay,expenses and other benefits?
(a) Deducted Not deducted
(b) What is the purpose of the £8,500 limit?
Task 2.9
An employee working at the main office is asked to work at another office. The new office is50 miles away from the main building. Should her home to work travelling expenses bereported on P11D:
(a) if the assignment lasted for 22 months? Yes No
(b) if the assignment lasted for 26 months? Yes No
Task 2.10
Is the employer liable for Class 1A NICs on the following items?
(a) benefits reported on P9D Yes No
(b) the company car benefit in kind value Yes No
(c) items included in a PAYE Settlement Agreement Yes No
(d) items covered by a dispensation Yes No
26
You may use this page for your workings.
27
You may use this page for your workings.
Association of Accounting Technicians154 Clerkenwell Road, London EC1R 5AD, UK Tel: +44 (0)20 7837 8600 Fax: +44 (0)20 7837 6970 © 12.04
NVQ/SVQ qualification codes
Payroll Administration (2003 standards) – 100/2939/4/G75M23Unit number (CYE) – Y/101/8093
