ACCA TX-UK Income tax computation – Savings Income (part 1)
YouTube video
6 Comments
J
Jane·
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.
R
Ronke·
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.
L
linseykams·
i don'"t have internet at my house how can download the videos to watch thems off line?
S
suleman·
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
P
purecha·
we did ddeduct, his income was 26,500 and the income taxed as non savings was only15000, hence 11500 was deducted as PA.
D
donald·
very good lecture.its better than reading on my own
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 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