Please ild like to know why £18,000 was charged at 20% instead of £18,500. Been that the £500 at 0% is the nil rate band for higher rate and should be taken after £33,500. I’m confused.
The nil rate band for savings income counts towards the basic and higher rate thresholds. We already charged non-savings income of 15,000 at 20% basic rate and then we charged 500 at nil rate therefore what is left for the basic rate threshold = 33500-15000-500 =18,000 Thats the reason 18,000 was charged at 20% rather than 18,500 Hope it helps.
Please ild like to know why £18,000 was charged at 20% instead of £18,500. Been that the £500 at 0% is the nil rate band for higher rate and should be taken after £33,500. I’m confused.
The nil rate band for savings income counts towards the basic and higher rate thresholds.
We already charged non-savings income of 15,000 at 20% basic rate
and then we charged 500 at nil rate
therefore what is left for the basic rate threshold = 33500-15000-500
=18,000
Thats the reason 18,000 was charged at 20% rather than 18,500
Hope it helps.
i don'”t have internet at my house how can download the videos to watch thems off line?
Hello Sir,
I have a question. Why u didn’t deduct PA in question 1 and deducted it in question 2. It will clear my confusion. Kindly reply
we did ddeduct, his income was 26,500 and the income taxed as non savings was only15000, hence 11500 was deducted as PA.
very good lecture.its better than reading on my own