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Hi there,
Regarding question one of the paper f6 2/12/2014 , why wasn’t Edwards tax brackets increased for the following in the answers
1. 4% of his £179,000 salary into a registered occupational pension plan , why wasnt his tax bracket increased by £7,160 ?
2. Also by 200*12=2,400 as he put it in a charity under the payroll deduction scheme ?Thanks
SusanYou are confusing occupational pension contributions with personal pension contributions and payroll deduction scheme with gift aid payments. Occupational pension contributions and payroll deduction scheme payments reduce employment income whereas personal pension contributions and gift aid payments extend the basic and if necessary higher rate band limits of the taxpayer.
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