Personal Tax: Practice Assessment 2 Question 1:3

KAF
KAF Registered, AAT Student Posts: 19
Hi,

Could somebody assist on how the loans figure ends up at 202 please?


Comments

  • Pian32
    Pian32 MAAT Posts: 457
    Averaging method so loan interest is calculated on:

    (5000 + 13000)/2 =9000 * HMRC rate (2.25%) = 202.50 Rounding can be in favour of tax payer -> 202
    AAT Level 4, MAAT
    ACCA in progress
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  • KAF
    KAF Registered, AAT Student Posts: 19
    Thank you for answering.
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