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November 30, 2023 at 1:01 pm
Please how do we arrive at 22,270 @ 20% for Example 3 when calculating the Tax liability
November 19, 2023 at 5:04 am
In the solution for practice question 1, why was the remainder of the Dividend thus: 5000.00 divided into Basic rate and higher rate instead of just using the high rate of 33.75%
October 20, 2023 at 4:34 pm
Is there an error I’m example #2? The non savings taxable income of £14,930 exceeded £5000 therefore the savings nil rate band should not be applicable. I’m confused.
November 5, 2023 at 6:42 pm
Exactly the question I had as well.
November 8, 2023 at 3:26 pm
I am not in a position to watch the lecture at the moment. However, it is TAXABLE non savings income that can’t be over £5000. If it is over this limit then the savings stater rate is wiped out. See following link for details-
November 11, 2023 at 10:16 am
The £1,000 deducted is based on this rule (2): For basic rate taxpayers, the savings income nil rate band for the tax year 2022-23 is £1,000, and for higher rate taxpayers it is £500. Additional rate taxpayers do not benefit from any savings income nil rate band.
The one you got confused with is this rule (1): Savings income benefits from a 0% rate. However, the starting rate only applies where savings income falls within the first £5,000 of taxable income. If non-savings income exceeds £5,000, then the starting rate of 0% for savings does not apply. Savings income in excess of the savings income nil rate
If you look at Example 4, might have a better understand, if rule (2) applies, the taxpayer would get a £5,000 deduction.
November 11, 2023 at 12:09 pm
J8542, I have not watched the video. I suspect you are right in the main. However, you are wrong when you say if non-savings income is greater than £5000 that the savings starter rate does not apply. I will quote directly from government site from link I gave above-
“If your other income is less than £17,570
Your starting rate for savings is a maximum of £5,000. Every £1 of other income above your Personal Allowance reduces your starting rate for savings by £1.
You earn £16,000 of wages and get £200 interest on your savings.
Your Personal Allowance is £12,570. It’s used up by the first £12,570 of your wages.
The remaining £3,430 of your wages (£16,000 minus £12,570) reduces your starting rate for savings by £3,430.
Your remaining starting rate for savings is £1,570 (£5,000 minus £3,430). This means you will not have to pay tax on your £200 savings interest.” If TAXABLE non-savings income is greater than £5000 the savings starter rate will be unavailable.
November 11, 2023 at 6:13 pm
mrjonbain, I copied the text straight from the manual. And I believe we are both correct.
“the starting rate only applies where savings income falls within the first £5,000 of taxable income” In order to have a taxable income of £5,000: £12,570 (personal allowance) + £5,000 which is £17,570.
To be more accurate, the text that I quoted could be “If taxable non-savings income exceeds £5,000, then the starting rate of 0% for savings does not apply.”
Thanks for your input, I have a better understanding now 🙂
October 2, 2023 at 3:01 pm
Hi there ,the working of example 6 part 2 ( the example that has Daisy), if possible, i would like to know how the 230GBP and 12,270 came to be?
thank you in advance
September 15, 2023 at 6:52 pm
In example 13, how will Elliot benefit? If the tax band hadn’t been extended to 39700, she would be paying 7540 but with increased band she will be paying 7940. That’s a 400 pound increase in tax liability.
July 22, 2023 at 7:07 am
In example number: 14 Adjusted net income exceeds 125,140 and 15 Adjusted net income exceeds 100,000 Why there is a difference it should be the same as the example number 14/ £ 125,140.
July 19, 2023 at 6:53 pm
hello in example 16 (Elton and david) david’s tax liability becomes nil when he uses his personal allowance (10000-12570=nil), so why doesn’t elton also use his personal allowance to be rid of his liability i.e. his 10000-12570…?
September 13, 2023 at 11:41 am
The election is only available when both taxpayers are either just basic rate taxpayers or non-taxpayers. The election is only likely to be made when one spouse is a non-taxpayer and has an amount of unused PA that would otherwise be wasted and the other spouse is only a basic rate taxpayer.
Given that Elton is a higher Tax Payer, this election isn’t possible
July 19, 2023 at 9:00 am
What is the admin chapter the tutor keeps referring to ? I studied the first chapter and I didn’t see any p60 or p11d.
July 2, 2023 at 8:13 pm
Tax will provide you with a good foundation – but you fill find the ATX syllabus has a lot more content. I would suggest investing in some learning content as well as revision kit.
June 23, 2023 at 10:07 pm
Hello – Is there any reason why I cant see the lectures? I’m just starting on lectures chapter 2
June 24, 2023 at 8:39 am
No idea, try another browser or device, video works fine
June 26, 2023 at 1:10 pm
Yes it’s blur when opened on laptop however on Mobile it’s clear
May 12, 2023 at 2:54 pm
Hi, In practise question 1 – Kate. how did we get the £2,270 x 8.75% for dividends?
May 16, 2023 at 1:01 pm
8.75% rate is applicable up to the BRB limit of £40,200 (refer to W1). Look at the “Income Tax” computation section in the answer and add up all income above and including £2,270, you will get £40,200 in total. The remaining part of the dividend income is taxed at the higher rate.
May 4, 2023 at 8:34 pm
In Example 12, after applying basic tax rate of 20% on 37700, we didn’t apply nil rate band (500 @ 0%) as Kathy is a high rate tax payer
May 4, 2023 at 8:44 pm
Sorry i got that. No savings income
March 13, 2023 at 9:39 pm
Question 3 of the practice questions – my income tax liability came to 56,638?
November 2, 2023 at 10:57 am
I got this too. Must be a typo or something since 56,638 is indeed the sum of everything on Practice Answers.
March 11, 2023 at 3:28 pm
I am planning to sit for ATX-UK next. Since the lectures of ATX are not available, I am planning to watch lectures for TX-UK and then solve revision kit for ATX-UK. Just needed your guidance if I am on the right path. Thanks for the lectures.
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