Puzzled

joanne2510
joanne2510 Registered Posts: 13 New contributor 🐸
edited June 18 in AAT student discussion
Hi I have came across a practice question where i have to advise of the income tax, NI and pension implications on the following:

£100 allowance for protective clothing
Attendance allowance of £10 a month
Sales Commission
Annual Holiday Bonus
Sick pay
Stat Maternity Pay
Stat Adoption Pay
Ord Stat Paternity Pay

I am confused as to what the question is asking and how I go about answering it?

Any ideas?

Thanks

Comments

  • Monsoon
    Monsoon Registered Posts: 4,020 Beyond epic contributor 🧙‍♂️
    Will they have to pay tax on each item? If so/ not, explain why.
    Ditto national insurance contributions.
    Re pension, presumably it's asking if those incomes count towards their income for pension purposes ( in how much they can contribute to their pension in the year)
  • payrollpro
    payrollpro Registered Posts: 425 Dedicated contributor 🦉
    I'd agree with Monsoon here, it looks like you have to take each one and clarify what the liabilities are. You could do a grid I suppose but I would bet your examiner wants a bit more information than that.

    Which level is this by the way because I can think of a few hardened practitioners who would struggle on the protective clothing allowance.
  • joanne2510
    joanne2510 Registered Posts: 13 New contributor 🐸
    Can you give me an example im on the first level and im v confused on this one :-(
  • payrollpro
    payrollpro Registered Posts: 425 Dedicated contributor 🦉
    I just wondered if you are studying level 2 or 3 because that will determine the amount of detail needed.
  • joanne2510
    joanne2510 Registered Posts: 13 New contributor 🐸
    level 2

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