AAT Practice Assessment 1 (FA2016) Q8
Options
IzzyOzzy
Registered Posts: 7
in Personal Tax
Please can someone explain how AAT get to £4,000 for this question?
Ruby has total income of £105,000. She wants to pay into her private pension scheme so that she can protect her full personal allowances of £11,000. She therefore needs to pay at least £X into her private pension scheme.
I've come back to this a few times and surely she would only need to make total net payments of £2,500 to make up for what she loses?
Any help is appreciated!!
Ruby has total income of £105,000. She wants to pay into her private pension scheme so that she can protect her full personal allowances of £11,000. She therefore needs to pay at least £X into her private pension scheme.
I've come back to this a few times and surely she would only need to make total net payments of £2,500 to make up for what she loses?
Any help is appreciated!!
0
Comments
-
Hi
AAT are correct you need to reduce your total income by £5,000 so as not to lose any PA, so making pension contributions of £4,000 grossed up by 100/80 will be the £5,000 needed to reduce the net income to £100,0000
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 12.4K For AAT students
- 262 NEW! Qualifications 2022
- 144 General Qualifications 2022 discussion
- 9 AAT Level 2 Certificate in Accounting
- 44 AAT Level 3 Diploma in Accounting
- 65 AAT Level 4 Diploma in Professional Accounting
- 8.8K For accounting professionals
- 23 coronavirus (Covid-19)
- 268 VAT
- 90 Software
- 271 Tax
- 133 Bookkeeping
- 7.1K General accounting discussion
- 195 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 345 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 578 Job postings
- 16 Who can benefit from AAT?
- 35 Where can AAT take me?
- 42 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 66 AAT membership