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Chap 2 answer 9 Income tax computation

This topic has 3 replies, 2 voices, and was last updated 8 years ago by Tax Tutor.

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June 7, 2017 at 12:27 pm #391300
aungmyint
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There appears to be an error in calculating Savings and Dividend income. Please have a look at the answer
June 7, 2017 at 4:34 pm #391375
Tax Tutor
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Thank you it is just a typing update error on the total tax figure as far as I am aware
June 7, 2017 at 6:16 pm #391511
aungmyint
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Looking at savings income am I correct in yr calculation £20000 @20% comes from non savings £130k +Savings £40k= £170 k “taxable income”
From tax table £32001-£150K @40% on £20000 ?
Above £150 k @45% on £20000?
Thank You
June 8, 2017 at 2:27 am #391662
Tax Tutor
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It is as the answer shows that non savings income is taxed first (130,000), and savings income is taxed next – so with 20,000 of the higher rate band remaining (150 – 130) 20,000 is taxed at 40% and the remaining 20,000 is taxed at 45%
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