course notes example 7 chapter 9

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November 26, 2013 at 1:29 pm #147907
aishaasad
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hello Sir,
can you please explain that why the underpaid employment tax has been grossed up?
Thank you
December 1, 2013 at 1:27 am #148731
Tax Tutor
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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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