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Hi Sir
June 2014 case 4, Sir I don’t understand why the total amount payable on 31 January 2015 is £21,051I though 50% twice is the amount of £14,034 , why 150%?The question asked you to:
Determine the amount of income tax and national insurance contributions which will be due for payment under self-assessment by Chi Needle on 31 January 2015.
The question states that no payments on account have been made for 2013/14 so the full income tax liability and Class 4 NIC that you compute (14,034) will now be payable at 31 January 2015. What the answer also then explains is that on January 31 2015 the taxpayer must not only pay the tax payable for 2013/14 but also make the first payment on account in respect of 2014/15 which will be 50% of the payable figure for 2013/14 (50% x 14,034).
Read the requirements very carefully the question did not state to calculate the balancing payment for 2013/14 (14,034) but to state how much (in total) was payable on January 31 2015.
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