[apache.helicopter69]

Thank you so much

[apache.helicopter69]

This is all my working so far I’ve done everything else, just don’t understand how to calculate the tax liability.

Thomas Income Tax Computation 24/25

Non-savings income Total
£ £
Trading profit 160000 160000
Total income 160000 160000
Less: Personal Allowance (W1) 0 0
Taxable income 160000 160000

Tax Calculation

Non-savings
45700 @ 20% 9140
??? @ 40%
??? @ 45%
160000
Income Tax Liability

W1

Net income 160000
Less: Gross gift aid payment (6400*100/80) -8000
Adjusted Net Income 152000

The Personal Allowance is reduced to nil as Adjusted Net Income exceeds £125140.

W2

Gross gift aid extends the basic rate band
37700 + (6400 * 100/80)
=45700

Gross gift aid extends the higher rate band
125140 + (6400 * 100/80)
=133140

W3
133140 – 45700
=87440

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