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Tax Tutor.
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aye01
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Dear Sir
I am having difficulty understanding full income tax computation from the above queation in kit. Would you be able to explain why income is split the way it is to apply different tax lercentage/bands?Kind regards
Tax Tutor
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Have you worked through the lectures and study notes for chapter 2?
aye01
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Dear Sir
Thanks for your response i am consulting some other study material not opentution one. I know how bands work its just different here in this question.Regards
Tax Tutor
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I assume you mean in the answer to part (b) (ii).
Not sure how BPP have answered their other questions involving the preparation of the income tax computation but I would – as shown in the OT study notes and lectures – have firstly shown the division of the income into non savings and dividend income and for the calculation of the income tax liability firstly identify the revised extended basic rate and higher rate band limits and then proceeded to show how the non savings income and then dividend income is taxed – once again as shown in the study notes and lectures.
aye01
Tax Tutor
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