Personal Tax help- questions with no answers.

reddwarf

Quick moan, why do text books do that - no answers to some of the questions?

Any way problem is this:-

'Prepare Tax computation, including calculations of total income tax liablity and the part that has yet to be paid or refunded'

'General Income 5000
Savings Inc 14625
Dividends 4500
personal allowance 6035
Taxable income 18090'

My probem is how to tha lay out the computation because the general income is -1035 and

Would someone like to set it out for me?

I think the answer is a refund of £489.

Unfortunately our tutor is ill at present but does anyone know where to get the answers to the questions with out answers in the Osborne books?

Any help appreciated.

reddwarf

sorry !tax alread paid is 3425

A-Vic

not sure off your discription red but i get tax payable of 900

tax comp

total non savings savings dividends

gen income 5000 5000

savings 14625 14625

dividends 5000 4500
4500x100/90

taxable income 24125 5000 14625 5000

personal all 6035

18090 5000 14625 5000


non savings

4500 x 0.20 900

savings

14625 x 0.20 2925

dividends

5000 x 0.10 500

total tax liability 4325
-3425
tax payable 900

A-Vic

have it saved on excel anyway so when am back tomoz i can send what i did even if the answer is wrong i have the lay out

reddwarf

Sorry should have said the savings and dividends are the gross amounts....

General income 5000 - 6035 = (1035)

I suppose my question is do you take off the -1035 (5000-6035) from savings income(14625) before calculating the tax e.g. 14625 - 1035= 13590 = 2320 x 10% = 232, 11270 x 20% = 2254 total = 2486

dividends = 4500, so 2320 x 10% = 232
2180 x 10% = 218 (or 4500 x 10% =450!)

total tax payable 2936 less tax paid -3425 = -489 (refund)

c u in the moning!

citrus_sharp

Yeah, the left over 1035 from the PA then gets taken off the total of savings income. so no general income, 13590 savings income and 4500 dividends income to tax

citrus_sharp

also the 2320 10% band gets taken off the savings income, and all of the 4500 is takable at 10%, not only 2320 of it

reddwarf

Thank you! I would have liked to see how the layout worked for the negative general income in a computation but the book didn't show an answer - very annoying!

A-Vic

if you send me the question when i email you later i will work on it it and see my compaired answer

Mendy

Hi. The answer is a refund of £39. We did this in class this week. I got it wrong!!!
The total taxable income was £17590
Calculation was:
Emplyment £5000 - £6035 = (£1035)
Savings £14625 -£1035 - £13590
Dividend £4000
Savings £2320 x 10% = £232 and then £11270 x 20% = £2254 total £2486
Dividend £4000 x 10% = £400
Savings + dividends = £2886
Less already paid of £2925
Income tax to be refunded (£39)

reddwarf

thanks