Income tax computation Example 3 and 5

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  1. Avatar of omarmahfooz omarmahfooz says:
    October 5, 2012 at 6:16 pm

    The personal allowance is applied to Non-savings first, then Savings, and then finally dividend Income.

    If there is no Non-savings income, Personal allowance can be applied to savings income or even dividend income.

    One should not mix the format.. It is always Non-savings, savings and then Dividend.

    Suppose if the Non-savings Income is only 5000. So the personal allowance should be charged 5000 to Non-savings, and the remaining amount of Personal allowance should be charged to Savings Account.

    Important thing to notice, Personal allowance can make your taxable Income maximum to Nil, but never negative.

  2. Avatar of macarthur macarthur says:
    September 6, 2012 at 11:39 pm

    Sir,pls i was abit mixup with example 5,with the treatment of starting rate at 2035 instead of 525

  3. Avatar of chimsa chimsa says:
    September 5, 2012 at 11:33 am

    Thanks

  4. Avatar of ozemoya36 ozemoya36 says:
    September 3, 2012 at 6:43 pm

    it is correct to deduct personal allowance from the saving income or dividend where there is no non saving income or where it is not up to 7,475?

  5. Avatar of uuuu uuuu says:
    August 12, 2012 at 11:49 am

    very good lecture.
    But confused in concept of notional tax credit on dividend.
    Sir what I have understand regarding notional tax credit on dividend is that when a person earns the
    dividend income from a company. The company itself
    deduct 10% of the dividend income and give remaining income to the dividend holder. But it never submit to the HMRC. So what is the reason for grossing it up.
    Why the company not give the dividend to the dividend holder Pound 2,000 in example # 7 instead Pound 1,800
    Sir kindly clarify.

  6. Avatar of prit prit says:
    June 1, 2012 at 8:35 pm

    hi , Is it 2560 or 2760? m confused. Please guide me.
    thnk yu.

  7. Avatar of peersahab007 peersahab007 says:
    April 28, 2012 at 3:15 pm

    but sir y did u taxed savings at 10 %?and then at 20 %?

  8. Avatar of quartey11 quartey11 says:
    April 14, 2012 at 6:19 pm

    pls i thought the 10% starting rate band has been abolished

  9. Avatar of awinoren awinoren says:
    April 13, 2012 at 6:57 pm

    Really helpfull

  10. Avatar of sweetusudu sweetusudu says:
    March 30, 2012 at 5:14 pm

    gud sir,its so helpful to me.thnx alot

  11. Avatar of activehands activehands says:
    March 27, 2012 at 7:46 am

    very detailed tutor.Listen to him and you wouldnt fail.

  12. Avatar of Goldi Goldi says:
    March 26, 2012 at 5:37 am

    Thanks.

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