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Noah098Sir, in my study kit I came across this following question, which bewildered me a bit. Here it is:
(Paraphrasing it in short)
Trading income= 41870 pounds
Employment income= 12250
PAYE=80pounds(dedcuted from employment income)
Calculate Income tax payable.Sir if a company has a PAYE system and taxes are deducted at source, why then only a partial amount(80/12280=0.653%) of tax has been deducted and the remaining left for the individual to pay along with their trading income.
Thank you.
Tax TutorHave you worked through the PAYE section of the Study Notes for chapter 9 which tells you in section 8.4:
“The PAYE code will include the employee’s personal allowance”
A further point for you to remember when answering an exam question. You answer the question that has been set, you do not query the information in it – you process that information to derive the correct answer.
Noah098
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