Practice Personal Tax Exam Question Help Please
jameshayward2005
Registered Posts: 2
Hi
Is anyone able to help me with the following question please, I cant see how the personal allowance is calculated:
Kayla who is 47 provides you with the following information that relates to her income for 13/14
Her annual salary from 1 January 2013 was £105,800 on 1st January 2014 she received a 2% pay rise
She has the use of a company car on which the benefit in kind has been computed at £3,350. The company pays for all running costs including the fuel and this benefit in kind has been computed at £4,190
She paid an annual subscription to her professional body costing £290
Kayla is in the company pension scheme. She pays 6% of her annual salary into this scheme and her employer pays 8% of her annual salary
During 13/14 kayla received £1,080 in interest from a building society account and £380 in interest from an isa
The personal allowance on the answer is £5166, I know you divide any amount over £100,000 by 2 and minus from £9440 and minus grossed up pension contributions from the original figure but I cant get it back to the answer.
Many Thanks
James
Is anyone able to help me with the following question please, I cant see how the personal allowance is calculated:
Kayla who is 47 provides you with the following information that relates to her income for 13/14
Her annual salary from 1 January 2013 was £105,800 on 1st January 2014 she received a 2% pay rise
She has the use of a company car on which the benefit in kind has been computed at £3,350. The company pays for all running costs including the fuel and this benefit in kind has been computed at £4,190
She paid an annual subscription to her professional body costing £290
Kayla is in the company pension scheme. She pays 6% of her annual salary into this scheme and her employer pays 8% of her annual salary
During 13/14 kayla received £1,080 in interest from a building society account and £380 in interest from an isa
The personal allowance on the answer is £5166, I know you divide any amount over £100,000 by 2 and minus from £9440 and minus grossed up pension contributions from the original figure but I cant get it back to the answer.
Many Thanks
James
0
Comments
-
You need to work out total income:
Salary - 105,800 + (105,800 x 0.02 (2% payrise) x 3/12 (payrise from Jan - March) = 106,329
Benefits - 3,350 + 4,190 = 7,540
Interest - 1,080 x 100/80 = 1,350 (gross up as interest is received net; ISA is exempt)
Less professional fees = (290)
Less pension deductions - 106,329 x 0.06 (gross as paid pre-tax from salary) = (6,380)
Total 108,549
Half of the excess over 100,000 - 8,549 / 2 = 4,274
9,440 - 4,274 = 5,1660
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 12.5K For AAT students
- 318 NEW! Qualifications 2022
- 161 General Qualifications 2022 discussion
- 11 AAT Level 2 Certificate in Accounting
- 56 AAT Level 3 Diploma in Accounting
- 87 AAT Level 4 Diploma in Professional Accounting
- 8.8K For accounting professionals
- 23 coronavirus (Covid-19)
- 272 VAT
- 92 Software
- 273 Tax
- 135 Bookkeeping
- 7.2K General accounting discussion
- 200 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 345 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 582 Job postings
- 16 Who can benefit from AAT?
- 36 Where can AAT take me?
- 42 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 66 AAT membership