Personal Tax FA2008 (June 09 Revised)

dobbieobby
dobbieobby Registered Posts: 231 Dedicated contributor 🦉
in AAT Level 4 (Level 8 in Scotland)
Can anyone please tell me in section one, why his personal pension hasn't been x100/80 then x 3 months and the tax band extended in the answer?

Comments

  • GemmaLouise
    GemmaLouise Registered Posts: 56 Regular contributor ⭐
    There isnt a personal pension scheme in the June 09 i have- the band is only increased by the gift aid

    (75 x 12) x 100/80 = 1125

    Basic rate band = 34800 + 1125 = 35925

    My paper is from Kaplan - maybe we have different revised papers?!
  • dobbieobby
    dobbieobby Registered Posts: 231 Dedicated contributor 🦉
    Hi Gemmalouise,
    I've got the one off here, this one:
    http://www.aat.org.uk/servlet/file/PTC_June_2009_-_Questions.pdf?ITEM_ENT_ID=74861&COLLSPEC_ENT_ID=1327
    Can anyone help please??
  • GemmaLouise
    GemmaLouise Registered Posts: 56 Regular contributor ⭐
    There isnt a personal pension scheme - it is an occupational one, this doesnt affect the band!!!!
  • dobbieobby
    dobbieobby Registered Posts: 231 Dedicated contributor 🦉
    FAO GemmaLouise (Need help again!!!)

    Am I going mad? In section 1, point 8 of the data, it says:

    As Bruce is now self-employed, he joined a private pension scheme on 1st Jan 09. On the first of each month, he pays £195 net, commencing on the 1st January 09.

    It is a personal pension, so we extend the tax band dont we?!!!
  • dobbieobby
    dobbieobby Registered Posts: 231 Dedicated contributor 🦉
    Hang on, think I've attached the wrong exam, THAT'S why it dont make sense!!!

    Will find and re-attach :-)
  • dobbieobby
    dobbieobby Registered Posts: 231 Dedicated contributor 🦉
    Gemmalouise, it's this one, sorry!!

    https://www.aat.org.uk/servlet/file/PTC_June2008_questions_revised_for_faa2008.doc?ITEM_ENT_ID=14046&COLLSPEC_ENT_ID=125
  • GemmaLouise
    GemmaLouise Registered Posts: 56 Regular contributor ⭐
    You dont need to increase the tax band because he is a lower rate tax payer - the total taxable income is 31086 - it would have to be 34800 or more.
    hope this helps
  • dobbieobby
    dobbieobby Registered Posts: 231 Dedicated contributor 🦉
    So because the balance is less than £34800 we completely forget about his personal pension?

    You've been a fantastic help thank you, just dont seem to be able to get my head about personal tax at all!!!
  • GemmaLouise
    GemmaLouise Registered Posts: 56 Regular contributor ⭐
    Yeah theyve basically put it in to trick us!!!!
    Cause they are a lower rate payer it doesnt make a difference!!!!

    No probs!

    Good luck for friday!
  • dobbieobby
    dobbieobby Registered Posts: 231 Dedicated contributor 🦉
    So, what would happen, if say his Non savings (after PA deducted) are £33000

    He's personal pension (once grossed up) is £5000

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