I have one problem regarding bpp kit question..please kindly help me.i would really appreciate it
here it is
ann is self employed.her taxable income for 16/17 is 76000 which is all trading income.she made a contributon (GROSS ) of 49000 into personal pension between sept 2016 and march 2017.this is her second contribution and her unsed annual allowance of 15/16 is b/f 20000.
calculate income tax payable of ann 16/17
the answer Actually in bpp kit is
available annual allowance is (40000 + 20000 ) = 60000 so there is no annual charge for the tax year 16/17
tax 81000 ( 32000 + 49000 ) * 20% = 16200
----- however, my answer is different .here it is below
tax ( 32 + 49 ) 81000 band limit extension
76000 * 20% = 15200
please help me
Ask the Tutor ACCA TX-UK
F6 Bpp kit Question regarding Gross personal pension.
the requirement is calculate income tax liability not '' payable''
I agree with you from the information you have provided - the extended basic rate band is 81,000 but the taxable income is 76,000 and is therefore taxed at 20%. As the income is all trading income there will be no difference between tax liability and tax payable
Thank you very much Sir.I was very so upset frustrated that time and you cleared it.May God Bless You.
Shouldn't we deduct PA 11000 from 76000 and then find 20%
With MCQ's it is most important to very carefully read the words used in the question! The question states that TAXABLE income is 76,000!
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