Help with personal Tax FA2013 (PTAX) personal allowance task 5

Rosierabbit

Hi Everyone

I am currently revising for the PTAX 2013 standards (FA2013) and was wondering if someone could help me with the workings for the personal allowance in task 5?

The salary is £106329
Employees pension cont £6380
Employers Pension cont £0
Benefit in kind cars £3350
Benifit in kind fuel £4150
Interest from building society £1350

Income from ISA 290
Professional subscription £290




Now the personal allowance is £5166 but i am unsure how to calculate this?


Thank you for your help

Rose x

Lucy_M

Hi, I've just done ptax level 4, which task 5 is it as it doesn't match the ones in my workbook or tutorial? I am on 2013 syllabus xx

Rosierabbit

Thanks you Lucy

It is task 1.5 from the new sample assessment under the 2013 standards for PTAX. There is only one assessment

Thank you so much x

CeeJaySix

Rosie,

The deduction from normal personal allowance is calculated as 50% of the assessable income over the threshold of £100,000.

Your data below is all correctly calculated, you can ignore the employer's pension contributions and the income from the ISA, as neither affect the return. I have added brackets to show the deductions.

The salary is £106329
Employees pension cont £(6380)
Employers Pension cont £0
Benefit in kind cars £3350
Benifit in kind fuel £4190 <--you had a typo here
Interest from building society £1350
Professional subscription £(290)

That lot added together = 108,549.
Less the 100,000 threshold = 8,549 difference
50% of the difference = 4,274.50
Normal personal allowance (be careful, sometimes in these they use an old person with a higher allowance so check you start from the right figure) less adjustment = 9,440 - 4,274.50 = 5,165.50 (they've rounded it up).

Hope that makes sense.

Lucy_M

Hi, the typo was what I couldn't figure out without seeing the data! Hope that's helped xx

Rosierabbit

Thank you so much both xx

lindzuk3

This is great, I was stuck on this question, I think I should have used these forums sooner!