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Hello tutor, I have few question. It will be very kind of you if you help me.
Personal allowance of 12570.
(1) if a person earns total income of 12570 so he will not pay any income tax?
(2) if a person earns less than 12570 so will a tax relief or tax benefit will be carried forward to next year. Like if he earns 12500 so will he get benefit of £70.(3) You have said that we will take employment income gross of any deduction made by employer according to PAYE. My question is that will it not be double tax for us as an employee? Once the employer has already paid under PAYE system and we are also including it in our proforma on page 5 of notes.
Thank you in Advance!
The personal allowance – yes you do not pay any tax on earnings up to this amount. You cannot carry any balance forward – so for example if you earn £10,000 you cannot carry forward the £2570 that is unused.
In the income tax computation you must include the gross salary along with any other income that the individual receives.
You then deduct the PA (12570) and work out the tax.
From this tax figure you then deduct the tax that has already been paid under PAYE (so not double tax) and the individual pays only the balance
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