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Hi,
Apologies if this has already been answered – I’ve tried to look through a few pages.
How is the Child Benefit added to the Income Tax computation? In the lecture example of Illustration 1 where ANI = 54,000 and the Child Benefit = £1,056.
Where is the £422 added to? Does it relate to Non-Savings Income?
Thanks,
Shan
Hi Shan
Look again at the note – it is a child benefit INCOME TAX CHARGE and the last line of the note states that the income tax charge is added in deriving the income tax liability of the taxpayer.
The figure computed is NOT treated as income, it is a part of the tax calculation after having computed the basic, higher and if relevant additional rate tax figures.
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