question on extended basic rate
Fiorellino
Registered Posts: 82 Regular contributor ⭐
June 2008 past paper exam section 1
"Joined a private pension scheme on the 1st Jan 08 and pays £195 net per month commencing 1 Jan 08"
My question is:
when calculating the net income tax payable why the extended basic rate is not applied to the £750 gross figure pension contribution?
Any advice?
"Joined a private pension scheme on the 1st Jan 08 and pays £195 net per month commencing 1 Jan 08"
My question is:
when calculating the net income tax payable why the extended basic rate is not applied to the £750 gross figure pension contribution?
Any advice?
0
Comments
-
Probably because he is still paying basic rate tax. It's the higher rate tax payer that can extend the tax band width.
Swampy190
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