PTC  Gift Aid/Pension Extending the band
Options
Chrissiemartin1
Registered Posts: 18 New contributor 🐸
Can anyone explain the gift aid bit
I know that you have to work out the gross figure so x100/78 and then by that figure you extend the 22% band
but do you take this figure off your total income figure
say you earned 38,819 and you have say 3,000 for gift aid or pension
after you have have allocated all the 22% tax what would you have left to work out does you 3,000 come off the 38,819..........
does that make sense?
I know that you have to work out the gross figure so x100/78 and then by that figure you extend the 22% band
but do you take this figure off your total income figure
say you earned 38,819 and you have say 3,000 for gift aid or pension
after you have have allocated all the 22% tax what would you have left to work out does you 3,000 come off the 38,819..........
does that make sense?
0
Comments

I think it just says in addition to the income so no you shouldn't have to take it off the income as well but I see what you mean. Just extend the band as you said.0

In the dec o5 paper it has taken it off look at the task 1.3 answer you had 39,815 as non savings income
so you have 2020 @ 10
then 29380 @ 22
3600 @ 22
this all totals 31,400 excluding the 3600 so from non saving you still have left
8415 to allocate in N/Savings. in the answer is shows 4815 @40%
and then it goes on to allocate the Savings an then divideds
Can someone help please:crying:0 
Im almost positive that you just take off the gift aid from the salary much like an Occupational pension for example
Salary  £36,000
Gift Aid  (£3,000)
Total in non savings under salary  £33,000
This then gives relief on £3,000 that was used for gift aid?
Does anyone agree with me??0 
hello no you do not take GIFT AID of the employment income, it EXTENDS the basic rate band as previously said and only effects the higher rate tax payers.
The answer of 4815 @ 40% relates to old tax rules.
You need to understand that the questions all relate to difference tax years and the only past exam paper that relates to our year is june 2008.
My tutor gave me updtated versions of the papers with answers relating to our tax year 07/08 and i presume your tutor did too.
If not then the answers on this site will be incorrect as they relate to older tax years.
Hope this helps.
Ps the answer for dec 05 is...
Basic rate increses by 3600 to 38200. so
41555(correct figures as our PA for year is 5225)34600= 3355 higher rate
Dividends first so 900@32.5% = 292.5
Savings Next so 1320@40% = 528
Non savings(33559001320) = 1135@40% = 454
Non savings start rate 2230@ 10% = 223
Rest non savings 32370+3600= 35970@22% = 7913.4
Total Tax liability will be 9410.90 
thats correct if you give a Gift Aid it extends the tax band but if you donate via a Payroll giving scheme through work then this is taken off your salary like a works pension scheme0

Doea anyone have the amended figures for Dec 07 PTC?
I am stuck on task 1.4  I have increased my tax band re the gift aid, but then I don't understand the next calculation, with the +128???
Help, still have pensions & shares to conker b4 9am....its gona be a long one!0 
Just worked it out!! The £128 is the gift aid grossed up (100 x 22/78) which is then added on  to extend the tax band by the total amount of gift aid that could be claimed back by the charity. Because she is a higher rate payer she si entitled to do this.
Does that make sense?
Swampy0 
need to read it a couple of times but I am sure it will...thanks. Can I borrow you for one more then....same paper but task 2.4 re Zhu's house, in the amended answer they have non occupational months of 33  where does this come from?
I don't really know the rules on prime residence etc, but looking at the paper he has been classed as 'occupation months' for the whole period (215) and then 33 months od non occupation, added to make 248? Just can't work out where the 33 has come from...either that or I am just losing interest!!0 
Periods of deemed occupation:
The last 3 years of ownership (even if not living in it)
Upto three years for any reason
Any period spent working abroad
Upto 4 years absence while working elsewhere.
So March 1987  Sept 1990 Exempt Lived in 42 months
Sept 1990  Sept 1996 Exempt Abroad 72 months
Sept 1996  Feb 2002 Exempt Lived in 65 months
Feb 2002  Oct 2004 Non exempt Moved out 33 months
Oct 2004  Oct 2007 Exempt for last 3 years 36 months
Does that help?
Swampy0 
:001_smile:Amazing........stuff paying college fees, just need you email address!! Thanks, don't go to sleep.......may have more...0

Last one of the evening: Dec 06 task 2.2... is the Dec 2000 share ignored because we work on the LIFO Basis??? :huh:0

Sorry not got that paper and cant read it online without downloading new gumpf on pc.
But points to consider:
Any shares prior to 1998 go into pool S104
Any shares purchased after that are matched 
Shares bought same day as other shares are sold  are matched against each other
Shares bought anything upto 30 days after disposal  are matched
then as you said LIFO
Best of Luck
Time for some idiot tv!! before tomorrow
Swampy0
Categories
 All Categories
 1.2K Books to buy and sell
 2.3K General discussion
 18.9K For AAT students
 267 NEW! Qualifications 2022
 147 General Qualifications 2022 discussion
 9 AAT Level 2 Certificate in Accounting
 43 AAT Level 3 Diploma in Accounting
 65 AAT Level 4 Diploma in Professional Accounting
 8.9K For accounting professionals
 23 coronavirus (Covid19)
 274 VAT
 92 Software
 274 Tax
 138 Bookkeeping
 7.3K General accounting discussion
 194 AAT member discussion
 3.8K For everyone
 38 AAT news and announcements
 352 Feedback for AAT
 2.8K Chat and offtopic discussion
 590 Job postings
 17 Who can benefit from AAT?
 36 Where can AAT take me?
 44 Getting started with AAT
 26 Finding an AAT training provider
 48 Distance learning and other ways to study AAT
 25 Apprenticeships
 65 AAT membership