Home For AAT student members AQ 2013 AAT Level 4 (Level 8 in Scotland)

PTAX tax refund

I have just answered the question below on the greelight test but I am confused. If the taxable income after the deduction for personal allowance is £nil then shouldn't the tax that was deducted at source from the bank interest also be refunded?

"For 2016/17, Jonty had a salary of £8,500 (£200 tax deducted) and he received bank interest of £2,000. What tax refund will Jonty receive for 2016/17?

£200

Explanation of the correct answer:
The taxable income after the personal allowance of £11,000 is £Nil, so all the tax deducted is refunded, £200."

Comments

  • PeterCPeterC Registered, Tutor Posts: 164
    Bank interest in 2016/17 does not have tax deducted at source
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