Income tax computation

Based on the information provided in the knowledge base, we can calculate the tax charged for a person with a non-savings income of £145,000 and savings income of £7,850.

For the non-savings income of £145,000, the tax calculation would be as follows:
– £37,700 taxed at 20% = £7,540
– Remaining £107,300 (£145,000 – £37,700) taxed at 40% = £42,920

For the savings income of £7,850, the tax calculation would be as follows:
– £500 taxed at 0% = £0
– Remaining £7,350 (£7,850 – £500) taxed at 40% = £2,940

Adding up the tax amounts for non-savings and savings income:
£7,540 + £42,920 + £0 + £2,940 = £53,400

Therefore, the amount of tax charged for a person with a non-savings income of £145,000 and savings income of £7,850 would be £53,400.

Kindly assist with the above computation from Tax AI. According to my knowledge this is incorrect as the additional rate payers don’t qualify for the savings nil rate band.