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In the question ur are required to calculate disposable income.Employement income is 35000. Lucy would travel from home to work offces by train and would buy an annual season ticket costing 1500
Per tax rules normal commuting does not get tax relief . So while calculating Income tax liability , 35000 does not deduct this cost.
However while calculating disposal income 1500 is deducted . can you pls explain why this 1500 is deducted?
I do not have the BPP kit, however “disposable income” is income after deducting taxes and work expenses, hence irrespective of the fact that it is not an allowable deduction in computing the income tax liability it will be deducted in deriving the figure of disposable income.
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