PTC June 08 Exam
cs_1988
Registered Posts: 231 Dedicated contributor 🦉
Having a slight issue.......
Why doesnt the pension bruce (Section 1) pays at 195 net after he is made redundant not do anything.
It's obviously been put there to confuse people, and its worked on me!!
Would really appreciate someones help.
Thanks
Chris
Why doesnt the pension bruce (Section 1) pays at 195 net after he is made redundant not do anything.
It's obviously been put there to confuse people, and its worked on me!!
Would really appreciate someones help.
Thanks
Chris
0
Comments
-
The only thing that you need to do for Payments to Private pensions is to extend the tax band by amount of pension paid = 195 x 3months = 585
Then you need to gross it up 585 x100/78 = 750.00
You can then extend the tax band by 750.00 ( Therfore band extended to 35385 before you start to pay tax at 40%) but if you do not pay tax at the higher rate of 40% which in this case Bruce does'nt then the extended band will have no benefit.
Hope this helps0 -
Yes, makes perfect sense. Thanks for that.
And with employer pensions and subscriptions you deducted from the Non savings income dont you?
Thanks again
Chris0 -
Thats right you deduct the employees contribution to the pension scheme from your pay, but no need to to anything with the employers contribution if they make any.0
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