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I got through ot questions and i did understand that if there is no non-saving of if there is non-saving which is fully covered by personal allowance there will be 5000 taxed at 0%
Sept 16 section c q31 joe
1/Director remuneration was 8000 and its fully covered by personal allowance.
So why we didnt do
5000@0% ??As i didnt solve any quest in practice kit for using this non saving 0% band only i did in ot notes
I guess iam missunderstanding plz clarify the idea to me.2/ when calculating income tax we didnt seperate ns and dividend rates we only use dividend rates why is that?
The £5,000 zero rate band is for savings income NOT non savings income- there is no savings income in this question!! You said you worked through the OT notes and lectures?
The non savings income here is fully covered by the PA so all the taxable income is dividend income and the dividend rates are applied.
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