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Have you posted under the wrong paper?
If you’re asking about the TX exam, then the answer is no.
The notes and lectures that are currently available are for the FA2023 whereas the September TX exam will examine FA2024 and there have been some changes (see other posts for the detail of the changes).You will need to buy Finance Act 2024 material (from either BPP or Kaplan) for the September 2025, December 2025 and March 2026 exams.
It’s two different ways of looking at it.
If your starting point is taxable income (after the personal allowance) which is correct, then:
Basic rate (20%) – £1 – £37,700
Higher rate (40%) – £37,701 – £125,140
Additional rate (45%) – £125,141 and overIf you haven’t yet taken into account the personal allowance, then £50,270 – £12,570 = £37,700, which is what your second set of rates shows:
Basic rate (20%) – £12,571 – £50,270
Higher rate (40%) – £50,271 – £125,140
Additional rate (45%) – £125,141 and overThe notes and lectures up to the March 2025 exam are based on the Finance Act 2023, whereas the June 2025 exam will be based on the Finance Act 2024 and there have been some changes. For example, the dividend nil rate band is now £500, the cash basis is now the default method for calculating the trading profits of unincorporated businesses rather than the accruals basis and the annual exempt amount for capital gains is now £3,000.
The majority of the content hasn’t changed, but if you are going to use the notes and lectures, then proceed with caution!
Income Tax
Dividend nil rate band has been reduced from £1,000 to £500 (savings income nil rate bands unchanged)
Child benefit tax charge is now 1% for each £200 of income between £60,000 and £80,000.National Insurance Contributions
Class 1 primary: main rate reduced to 8% between £12,570 and £50,270, 2% above this
Class 1 secondary: remains at 13.8% above £9,100
Class 1A: remains at 13.8%
Class 2: Generally, no longer payable. Voluntary class 2 contributions can be paid by those with profits below the small profits threshold to maintain their NIC contributions record.
Class 4: main rate reduced to 6% between £12,570 and £50,270, 2% above thisEmployment income
Official rate of interest remains at 2.25%
Car benefit percentages unchanged, fixed amount to apply percentage to for car fuel remains at £27,800
Van benefit remains at £3,960, and £757 for fuelBusiness Income Tax
The cash basis is now the default method for calculating trading profits of an unincorporated businessCapital Gains Tax
Annual exempt amount reduced from £6,000 to £3,000
Higher rate of tax for residential property disposals reduced from 28% to 24%.VAT
The VAT registration threshold has increased to £90,000
The VAT deregistration threshold has increased to £88,000In a working, grossed up gift aid donations reduce your net income to arrive at ‘Adjusted Net Income’ (ANI) for the purposes of potentially tapering the PA and calculating the child benefit tax charge. They do not reduce your net income in the body of the IT comp (so don’t reduce taxable income). The other effect is that the grossed up gift aid donations increase both your tax bands (£37,700 and £125,140) so that more income is taxed at lower rates and less at higher rates, resulting in a tax saving.
Income Tax
Dividend nil rate band has been reduced from £1,000 to £500 (savings income nil rate bands unchanged)
Child benefit tax charge is now 1% for each £200 of income between £60,000 and £80,000.National Insurance Contributions
Class 1 primary: main rate reduced to 8% between £12,570 and £50,270, 2% above this
Class 1 secondary: remains at 13.8% above £9,100
Class 1A: remains at 13.8%
Class 2: Generally, no longer payable. Voluntary class 2 contributions can be paid by those with profits below the small profits threshold to maintain their NIC contributions record.
Class 4: main rate reduced to 6% between £12,570 and £50,270, 2% above thisEmployment income
Official rate of interest remains at 2.25%
Car benefit percentages unchanged, fixed amount to apply percentage to for car fuel remains at £27,800
Van benefit remains at £3,960, and £757 for fuelBusiness Income Tax
The cash basis is now the default method for calculating trading profits of an unincorporated businessCapital Gains Tax
Annual exempt amount reduced from £6,000 to £3,000
Higher rate of tax for residential property disposals reduced from 28% to 24%.VAT
The VAT registration threshold has increased to £90,000
The VAT deregistration threshold has increased to £88,000The notes and lectures up to the March 2025 exam are based on the Finance Act 2023, whereas the June 2025 exam will be based on the Finance Act 2024 and there have been some changes. For example, the dividend nil rate band is now £500, the cash basis is now the default method for calculating the trading profits of unincorporated businesses rather than the accruals basis and the annual exempt amount for capital gains is now £3,000.
The majority of the content hasn’t changed, but if you are going to use the notes and lectures, then proceed with caution!
The notes and lectures up to the March 2025 exam are based on the Finance Act 2023, whereas the June 2025 exam will be based on the Finance Act 2024 and there have been some changes. For example, the dividend nil rate band is now £500, the cash basis is now the default method for calculating the trading profits of unincorporated businesses rather than the accruals basis and the annual exempt amount for capital gains is now £3,000.
The majority of the content hasn’t changed, but if you are going to use the notes and lectures, then proceed with caution!
If the amount of the LOAN is no more than £10,000, there is no benefit. The £10,000 exemption applies to the LOAN itself, not the benefit charge on that loan. If the amount of the LOAN is £2,600, there is no benefit and therefore no Class 1A NIC. If the BENEFIT (ie the amount of the loan x interest saving) is £2,600 (or any amount for that matter) it is assessable and therefore liable to Class 1A NIC
The 20% is for the use of assets benefit (ie the asset belongs to your employer but you use it for private purposes). The payment of a bill is not an asset! If your electric bill is £200, then there’s no difference from a tax perspective if your employer gives you the £200 to pay the bill (eg in the form of a bonus) or if your employer pays the bill for you directly. Either way, you are £200 in pocket and therefore the full £200 is taxable on you.
Donations under the payroll giving scheme are paid gross and are an allowable deduction in arriving at employment income. Therefore a smaller amount of employment income is included in the income tax computation which means that the correct amount of tax relief is automatically given. There is no further impact on the income tax computation.
The past paper section on the ACCA website does not update them for the latest Finance Act. You will have to buy a FA 2014 revision kit.
It’s a really bad idea to use out of date tax material. If you’re serious about passing then I would recommend that you bite the bullet and at the very least buy an up to date revision kit. I don’t think that you really need to buy a new textbook as the lecture notes on this site will be more than sufficient to bring you up to date with the changes, but a new revision kit is a must.
