ptx question FA2013 task 1.9

Rosierabbit

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

liveprincess

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