PTC Dec 2008

Tinkerbell007

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!!!

Esme

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

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

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

There is a still 10% starting rate on savings income only though

Tinkerbell007

Is that the one that applies to the first £2440 of savings if the person has no non-savings income?

wonderwife2008

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