SE03129 - Removal or transfer costs: relocation companies: management fees: example
Schedule 11A ICTA 1988
| Example
A relocation package provides an all-inclusive service with a fixed management fee of £1,500. |
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| £ | £ | ||
| Services provided are | Legal fees | 1,500 |
|
|
| Estate agency | 1,500 | |
|
| Removal | 500 |
|
|
| Loan interest | 2,500 |
|
|
|
|
| 6,000 |
| Counselling employees |
|
| 1,500 |
| The total expenditure on services charged to the employer is £7,500, of which £6,000 is eligible for relief. The proportion of the management fee eligible for relief is | |||
| £1,500 x £6,000 | = 1,200 | ||
|
|
| £7,500 |
|
| The employee's tax bill will be |
|
|
|
| Cost of services provided |
|
| 7,500 |
| Management fees |
|
| 1,500 |
| Less |
|
| 9,000 |
|
|
| Qualifying expenses and benefits | 6,000 |
|
|
| Qualifying management fee | 1,200 |
| Benefits charged to tax | £1,800 | ||
