personal tax practice CBA Help

ms sadat

hi guys
in 2010 CBA practice i couldnt figure out the task 1.9 .can anybody help as i have the retake exam on friday.!

deborahcarpenter

Hi
The way i read it is as follows
If his salary was £1500 he would be below the personal allowance threshold of (6475) so would pay 10% tax on his sacings interest
If his salary was 10000 he would be above the allowance but below the higher tax rate threshold (37400) so would pay 20% tax on his interest
I cant remember what the last salary figure was but it is above the £37400 tax bracket so he woul pay 40% tax on his interest.
You just need to put the figures in the boxes for the relevant tax amount on his savings
I hope i have explained this clearly enough for you?
Deborah