Adjusted net income book error?

pradapanda

I am using Osborne book atm. In relation to higher tax payers’s personal allowance, I know we must work out adjusted net income first. According to the text book, it should be total net income - grossed up ppp - grossed up gift aid - personal saving allowance - dividend allowance on page 5.8. However in the workbook question 5.5. It appears that only need to - grossed up ppp - grossed up gift aid. I’m so confused, ther must be an error somewhere, but I don’t know which vision is incorrect. Because I’m completely self studying, I have no way to find out the correct answer except coming here. Can anyone help please? Exam booked for next Friday.

hal978

Please see the "Changes to HMRC Guidance" on the link below, which shows the correct formula you mentioned (on page 5.8):

http://www.osbornebooksshop.co.uk/p/personal_tax_finance_act_2016_tutorial/category/1085

pradapanda

Thank you so much. @hal978