hello Sir,
can you please explain that why the underpaid employment tax has been grossed up?
Thank you
Ask the Tutor ACCA TX-UK
course notes example 7 chapter 9
As per note 8.4(b) above the example - the last line of deductions - tax underpayments grossed up. We are computing the level of income a basic rate taxpayer would need to compute that amount of tax and then reducing her PA by that amount.
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