Personal Tax

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Hello everyone. Can someone please help me with a question from Practice Cbt 1 Fa 2009

Joanne provides you with the following information:

Her annual salary for the twelve months to 30 June 2010 was £17,400

Her annual salary for the twelve months to 30 June 2011 was £19,440

She received a bonus of £876 on 14 April 2010 based on the company's accounting profits for the year ended 31 March 2010.

She received a bonus of £960 on 17 April 2011 based on the company's accounting profits for the year ended 31 March 2011.

She receives a 5% commission per year on her salary.

What is the salary taxable for 2010/11

What is the bonus taxable for 2010/11

What is the commission for 2010/11

Thank you

Daz1865

Its been a while since I've done this but this is how I would answer it

April 2010 - March 2011

So that is 3 months from the first year. 17400/12*3 = 4350
9 months from the following year. 19440/12*9 = 14580
Salary for the year = 18930

Bonus is taxed on the year it was recieved, so it would be 876

Commision, I guess would be 5% of 18930. 946.50.

clegganator

Daz1865 wrote: »

Salary for the year = 18930
Bonus is taxed on the year it was recieved, so it would be 876
Commision, I guess would be 5% of 18930. 946.50.

Looks about right to me!

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Thank you Daz1865!