PTC Dec 2008

Can someone explain the calculation they do on Dec 2008 PTC question 1.5?

I don't get were the starting rate band comes into it? I don't think I've seen this on any of the other past papers?

I know I'm missing something really obvious but my brain has gone to sleep after DFS this morning!!!

Comments

  • Esme
    Esme Registered Posts: 711
    On the first page of the question paper it has all the bands, and the first 2,230 is taxed at 10%, this doesnt exist now so I'd be careful doing past papers on this subject as there are constant changes!
  • NO BUSINESS CASE
    NO BUSINESS CASE Registered Posts: 85 ? ? ?
    Hi Tinkerella this was a Gordon Brown thing where there was the extra rate band of 10% starting tax. I believe it was abolished in 2009 (when there was a furore about the private equity fat cats paying less tax than their cleaners) and hence we don't have to worry about it tomorrow.

    I assume it would be on all the old past papers pre 2008 going back to when that band was brought in by the government.

    Good luck tomorrow must be honest I can barely keep my eyes open thanks to the DFS exam this morning and the glorious sun shine that is calling me outside!!!
  • Tinkerbell007
    Tinkerbell007 Registered Posts: 64 ? ? ?
    Thanks guys!! Not going to stress about it now!! :)

    I'm so tired after DFS - an evening of revision for PTC is not what I need!!
  • wonderwife2008
    wonderwife2008 Registered Posts: 41 ? ? ?
    There is a still 10% starting rate on savings income only though :)
  • Tinkerbell007
    Tinkerbell007 Registered Posts: 64 ? ? ?
    Is that the one that applies to the first £2440 of savings if the person has no non-savings income?
  • wonderwife2008
    wonderwife2008 Registered Posts: 41 ? ? ?
    that's right if the tax liability calculation starts at savings apply the 10% starting rate ... don't forget to deduct any excess of the personal allowance available first
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