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Hi Gill
pls can you advise chapter 2 example 11 on the manual ?
so Elliot has paid £1600 to charity. I understand that £1600 nett will increase his tax band by £2000 Gross, but why it won’t reduce his adjustable net income?
my work out is
ANI= 53000-1600/0.8= 51000
I always think that gift donation has two effect
decrease the total income
increase the tax band
thank you
thank you. however I stuck now at Chapter 2 exmple 12. I looked at the answer after my own work out.
so the ANI is £152,000 which is over than £125140 means PA is not applicable.
The gift donation increased both BRB and HRB. but when it comes to work out tax
first 20% is calculated on £45700
the 40% rate, where the figure £112300 comes from? should it not be (133140-457000) x40%?
thanks
There’s an error in the answer – sorry
You are corredt it should be 133140
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