Osborne Books (Tutorial [FA 2020 - AQ16]) Task 7.8 - Income Tax - Further Issues

adilosmanadil
adilosmanadil CyprusAATQB Posts: 8
edited November 2021 in Business Tax
Hi,

I am struggling to understand how the figure of £4,800 has been calculated. Could someone please explain how these figures have been calculated and how this table is filled out ?

The only thing I understand is that the outstanding tax in a tax year is split into 2 payments paid in the following year at the end of January and end of July.

Thanks in advance.
Q.png 132.1K
A.png 70.7K
AAT
Level 2 Certificate in Accounting - May 2021
Level 3 Advanced Diploma in Accounting - Aug 2021
Level 4 Professional Diploma in Accounting - in progress
AATQB - Aug 2021
MAAT - in progress

Best Answer

  • PeterC
    PeterC Registered, Tutor Posts: 236
    Answer ✓
    2019/2020
    Non-PAYE amount 8,500 - 2,300 = £6,200 due 31/Jan after tax year ie 31/1/21

    2020/2021
    Payments on account = 6,200/2 = £3,100 due 31/1/21 and 31/7/21

    Balancing payment = £11,000 less 2x£3,100 already paid = £4,800 due 31/1/22

    2021/2022
    Payments on account = 11,000/2 = £5,500 due 31/1/22 and 31/7/22
    adilosmanadil

Answers

  • adilosmanadil
    adilosmanadil CyprusAATQB Posts: 8
    Much appreciated @PeterC !
    AAT
    Level 2 Certificate in Accounting - May 2021
    Level 3 Advanced Diploma in Accounting - Aug 2021
    Level 4 Professional Diploma in Accounting - in progress
    AATQB - Aug 2021
    MAAT - in progress
  • PeterC
    PeterC Registered, Tutor Posts: 236
    You're welcome
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