Personal Tax 2012/13 Question Help

nmj Registered Posts: 3 New contributor 🐸
Hi i'm stuck on this question can someone help me out:


  • Nps
    Nps Registered Posts: 782
    You're almost right.

    You need the average of the loan amount outstanding at the start of the year and the amount outstanding at the end of the year (you have the figures right but your reasoning is slightly wrong).

    You then multiply by 2% as you have done, but not by 9/12 as the loan is not completely paid off.
  • Nps
    Nps Registered Posts: 782
    I believe so. This is using the average method, but you would get a slightly different answer if you used the strict method (I would imagine you are expected to use the average method though).
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