PTAX (FA2014) Q5 - Tax Calculation

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flyhigh
flyhigh Registered Posts: 18 Regular contributor ⭐
in General discussion
These are the figures that I got:
Salary: 106,329
Employee's pension contribution: -6,379
BIK - Car: 3,350
BIK - fuel: 4,190
B. Soc interest (grossed up): 1,350
Professional subscription: -290

Now the total for the total income before assessing for the restricted Personal Allowance is £108,550.
The restriction is: 50% * (£108,550 - £100,000) = £4,275. Pers Allow (£10,000 - £4,275) = £5,725.

Can somebody just confirm that the "professional subscription" does come into the amounts to be taken off (just like employee's pension contribution) as I cannot see any confirmation of that in my BPP notes?

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  • flyhigh
    flyhigh Registered Posts: 18 Regular contributor ⭐
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    and if anyone knows of any locations where there are more mock assessments of PTAX using the FA2014 numbers, please can they guide me towards a URL?

    I don't find that other mock assessment for PTAX on the AAT training area particularly useful as it uses FA13 numbers.
  • shamil91
    shamil91 Registered Posts: 94 Regular contributor ⭐
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    Hi there,

    Professional subscription is an allowable deduction from the total employment income but for the question yes it will be deducted as it is an allowable expense. Usually Pension contribution will be deducted from the Total Employment income in order to give the assessable / taxable employment income. You must remember that the following are allowable deductions from the Total employment income in order to give the assessable employment income : Occupational pension scheme, Professional subscription, entertainment expenses for employees if reimbursed (such as £150 per employee per tax year), other benefits and expenses which must be wholly exclusively and necessarily incurred in the employment duties and Payroll giving scheme, also know as Give as you earn (GAYE) donating to charity through payroll.

    Hope this helps you out

    Kind regards

    Shamil
  • flyhigh
    flyhigh Registered Posts: 18 Regular contributor ⭐
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    Shamil - Thank you very much for that confirmation.
  • shamil91
    shamil91 Registered Posts: 94 Regular contributor ⭐
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    Hello,

    Your most welcome, I hope that has helped you out

    Kind regards

    Shamil

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