Comments

  1. Profile photo of utkurjon says

    Hi there,

    I would like to thank you and Open Tuition for all the great lectures that help us in our studies.

    Would you be kind to explain the following please.

    I noticed that when there is an employment income we deduct PAYE to get the figure for tax payable. However when there is a trading profit we do not deduct. The only items deducted in this case is tax credits for building society/bank deposit interest and dividend so far. Obviously there is no PAYE for trading profit but are we supposed to deduct anything? As both income will be taxed regardless whether they are from employment or self-employment.

    Many thanks in advance.

  2. avatar says

    Hello,

    I have a problem in calculating the Tax liability for the Savings Income. Why on the answer it was split 20,000 each and not subtracting the BR (31,865) for 40,000.

    Thank you so much,

    Isa

    • Profile photo of Ruth says

      Hi Isa

      remember you have to deal with Non-savings income first before savings income. non-savings income of 130,000 is greater than 31,865 & has therefore used up the basic rate (i.e. 31,865).

      maybe go back & watch the 2nd lecture video to see how different rates apply

      hope that helps

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