There is something not clear to me. Why is is that in the NS we consider the amount of 25’000 and therefore calculate the basic rate of 20% Where as for the S we consider the amount of 35’000 and therefore only apply a nil rate band of 500?

Should the taxes on S not be applied on the 10’000?

In example 9, tax liability is £74,211 instead of £74,411. I see an error in the calculation of tax on dividend income. Please clarify if this is right.

Just a quick question, example 4 the answer sheet has answer 880 income tax liability, should it be 600? From where this extra 280 coming from, as only taxable is 3000 @ 20%, which gives 600.

Aren’t we meant to gross Savings & Dividends income before we arrive to the total income figure and then reduce the tax amounts as tax credits to arrive at the tax payable amount. If you can please clarify.

theodoor says

Dear Sir,

There is something not clear to me.

Why is is that in the NS we consider the amount of 25’000 and therefore calculate the basic rate of 20%

Where as for the S we consider the amount of 35’000 and therefore only apply a nil rate band of 500?

Should the taxes on S not be applied on the 10’000?

Thank you for your clarification.

adanma says

In example 9, tax liability is £74,211 instead of £74,411. I see an error in the calculation of tax on dividend income.

Please clarify if this is right.

reimolydig says

Good day

Just a quick question, example 4 the answer sheet has answer 880 income tax liability,

should it be 600? From where this extra 280 coming from, as only taxable is 3000 @ 20%, which gives 600.

Thank you advance

Tax calculation:

Savings 5,000 @ 0% 0

1,000 @ 0% 0

3,000 @20% 600

Income Tax liability 880

lloydseq says

Dear Tutor,

Aren’t we meant to gross Savings & Dividends income before we arrive to the total income figure and then reduce the tax amounts as tax credits to arrive at the tax payable amount. If you can please clarify.

lloydseq says

I have checked on ACCA and can see the Savings income are now gross as per the changes in 2016/17, so happy with this.