Personal Tax - HELP

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gloria92
gloria92 Registered Posts: 2
in AAT Level 4 (Level 8 in Scotland)
I am really struggling on FA14.

I just cannot figure out how they have got the figures in the last column???



Source of investment income Investment income received Other taxable income Taxable investment income Additional tax

ISA 240 42000 0 0

Building society 1840 30000 2300 87


Dividens 846 74500 960 216



Can anyone explain this to me??

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  • gloria92
    gloria92 Registered Posts: 2
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    i did have it in a table but its unformatted - so first number is investment income, then investment income received, other taxable income, taxable investment income, and additional tax..... its the additional tax I am struggling with
  • NickCraggs
    NickCraggs Registered, Tutor Posts: 62 Regular contributor ⭐
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    As this is FA14 are you sure you are using the correct basic rate band?
    Nick Craggs FMAAT AATQB ACA, AAT Branch Member and Distance Learning Director at First Intuition

    firstintuition.co.uk/
  • mike150185
    mike150185 Registered Posts: 41
    edited July 2016
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    Basic rate tax band (at that time) is 31865 so:

    Building society interest + other taxable income = £32,300. £435 is taxed at 40% so £174. Minus 20% taxed at source (£87) = additional tax to pay £87

    Dividend is taxed entirely at higher rate of 32.5% so £312 minus 10% taxed at source (£96) = £216 additional tax

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