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Barry , a self employed plumber , received the following income in 2012/13
Building society interest 4600, Dividend from a UK company 4500
Trading income 145 000. \he paid allowable interest of 300 on 13 August 2012. Calculate Barry’s income tax liability for 2012/13.Kindly help on this question. l don’t understand why the answer is nil
Who said it is ?
I am getting £55,476 (did it in a hurry, may b wrong but its definitely not zero)
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Non savings savings dividend total
trading income 145000
bsi 4500*100/80 5750
dividend 4500*100/90 5000
———— ———— ——- ———-
total income 145000 5750 5000 155750
less interest (300) (300)
————– ————– ———— ———–
net income 144700 5750 5000 155450
PA NIL
TAXABLE INCOME 144700 5750 5000 155450
====== ===== ==== =====
INCOME TAX
Non savings 34370*20% 6874
110330*40 44132savings 5300*40% 2120
450*50% 225dividend 5000*42.5% 2125
tax liability 2012/13 55475
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