ptx question FA2013 task 1.9

Rosierabbit
Rosierabbit New MemberRegistered Posts: 17
Hi there just wondering if someone could show me the workings for the additional £300 tax from the sample assessment 2010 standards FA 2013. Its question 1.9. Thank you so much Rosie x

Comments

  • liveprincess
    liveprincess Well-Known Registered Posts: 214
    Hiya

    this question only asks for additional tax paid on the interest received. I was caught by this myself. So gross up the amount of interest received £3300. His other income is £30210 and the basic rate is £32010 so £1800 of his interest will be in the first band and remaining £1500 in the higher band.
    1800x20%=£360
    1500x40%=£600
    total tax liability on the interest is £960 but £660 was already deducted at source, so the remaining balance to pay on this is £300

    Hope this helps

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