dividends BPP book PTC practise exam 1

taskey
taskey Registered Posts: 1,800 Beyond epic contributor 🧙‍♂️
in AAT Level 4 (Level 8 in Scotland)
calculate the net income tax payable for 2009/10

their answer

tax on NSI
£24,767 x 20% = 4953.40
tax on DI
£850 x 10% = 85.00

= 5038.40

My problem, i thought we had to then deduct the dividends etc that were done at source, but in the answer book it goes no further than above.

is it because it is under the band limit? stuck and would appreciate knowing why this happens

thanks

Tracy

Comments

  • pirate
    pirate Registered Posts: 469 Dedicated contributor 🦉
    Hi Taskey

    looking at BPP book practice exam 1 and the my question is completely different there is no NSI its for Josua Howie,,which page is the exam on

    K
  • taskey
    taskey Registered Posts: 1,800 Beyond epic contributor 🧙‍♂️
    it is on p171 q 1.3, the answer is on p301. the nsi is the figure brought forward from q 1.2

    i think it is a mistake in the book as through out the rest of the answers, the dividends are deducted along with and savings interest
  • meibaker
    meibaker Registered Posts: 481 Dedicated contributor 🦉
    taskey wrote: »
    it is on p171 q 1.3, the answer is on p301. the nsi is the figure brought forward from q 1.2

    i think it is a mistake in the book as through out the rest of the answers, the dividends are deducted along with and savings interest

    on my book, there is no nsi.....
  • taskey
    taskey Registered Posts: 1,800 Beyond epic contributor 🧙‍♂️
    meibaker wrote: »
    on my book, there is no nsi.....

    mine is a brand new book, this is frustrating.

    what does it say for the answer in your book then? confoosed now

    tracy

    just checked mine defo says tax on non-savings income 24767 x 20% = 4953.40
  • meibaker
    meibaker Registered Posts: 481 Dedicated contributor 🦉
    taskey wrote: »
    mine is a brand new book, this is frustrating.

    what does it say for the answer in your book then? confoosed now

    tracy

    just checked mine defo says tax on non-savings income 24767 x 20% = 4953.40

    sorrY, i thought you mean national saving investment (NSI)
    ive have the same answer like your.
    sorry
  • taskey
    taskey Registered Posts: 1,800 Beyond epic contributor 🧙‍♂️
    meibaker wrote: »
    sorrY, i thought you mean national saving investment (NSI)
    ive have the same answer like your.
    sorry

    phew - so no i am not going mad - do you know why they have not taken off the dividends afterwards?
  • meibaker
    meibaker Registered Posts: 481 Dedicated contributor 🦉
    hey, ive just start on this exam, there is no problem wioth the answer tho
  • meibaker
    meibaker Registered Posts: 481 Dedicated contributor 🦉
    taskey wrote: »
    phew - so no i am not going mad - do you know why they have not taken off the dividends afterwards?

    now i see what you mean now, lol
    yes it should deduct tax paid at source.
  • taskey
    taskey Registered Posts: 1,800 Beyond epic contributor 🧙‍♂️
    meibaker wrote: »
    now i see what you mean now, lol
    yes it should deduct tax paid at source.

    thanks

    i think i will just go with what i know from past papers as that is too ambiguous for me - was panicking thinking "if i cant even get this right....."

    Thanks again

    Tracy
  • meibaker
    meibaker Registered Posts: 481 Dedicated contributor 🦉
    taskey wrote: »
    thanks

    i think i will just go with what i know from past papers as that is too ambiguous for me - was panicking thinking "if i cant even get this right....."

    Thanks again

    Tracy

    there are quite a lot errors on the book.
    find it quite werid to study PCT today, not sure why, think my mind is still on BTC. LOL
  • pirate
    pirate Registered Posts: 469 Dedicated contributor 🦉
    I totally agree with this it does seem a bit odd and BPP get a lot of answers wrong but it might be because
    Technically he is due to pay £4953.40 plus £85 for the dividend interest

    Since we dont know what he has paid in PAYE we dont know if he has paid any tax yet so maybe thats what they mean he is due to pay this amount
    whether he needs to actually pay anything is another matter
    I think I might add all this into the exam if I got this question so to be totally anal lol

    Its very foxing (or should I say taxing) when you are not sure if the answer is even correct in the first place

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