Personal allowance £0 ?? Personal tax CBA 2011

David1
David1 Registered Posts: 2 New contributor 🐸
in AAT Level 4 (Level 8 in Scotland)
On the CBA with 2011 standards Task 1.12 the answer says that the personal allowance is zero, why is this? I have never come across it before!
The task involves calculating tax from employment where the income is £139,500

Comments

  • Jo Clark
    Jo Clark Registered Posts: 2,525
    Hello David

    If I remember rightly, should income exceed £114,950 then you do not receive a Personal Allowance.

    Hope this is right, if not, someone please correct me.


    JC :o
    ~ An investment in knowledge always pays the best interest ~
    Benjamin Franklin
  • David1
    David1 Registered Posts: 2 New contributor 🐸
    wow your right!!
    Thanks alot!
  • Jo Clark
    Jo Clark Registered Posts: 2,525
    Jo Clark wrote: »
    Hello David

    If I remember rightly, should income exceed £114,950 then you do not receive a Personal Allowance.

    Hope this is right, if not, someone please correct me.


    JC :o


    I checked for my own peace of mind!!

    If your income is above £100,000 you will also lose basic personal allowance, irrespective of age. Above £114,950 (£116,210 in 2012-13) you receive no tax-free allowance.

    I hope this helps.

    You may find HMRCs website useful if this is not included in your study material.

    Good luck with the exam when you take it :)


    JC
    ~ An investment in knowledge always pays the best interest ~
    Benjamin Franklin

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