Hi
...Anyone has a moment to explain me how the past paper answer has been calculated? i can't make any sense? florina and kanzi scenario question..:(
q
annual salary 50,000
receives div from her co (shes a director) 20,0000 every year
taxable benefits 25,000
other income unquoted unrelated dividend 150 received every june
question- calc total tax saving by florina and flight hip ltd , in tax year 17/18, the company were to make a single lump contribution to personal pension fund for Florina - instead of paying her a dividend?
exam paper answer -
3500 (5000-1500) x 0%=0
16500 x32.5% = 5362
tax cost 5362 (equal to the tax saving if the dividend is not paid)
PLease explain as I am not getting the above working , what is the 5000-1500? why % percent ?.....