- This topic has 1 reply, 1 voice, and was last updated 3 weeks, 6 days ago by
.
- Posts
- May 5, 2020 at 7:46 am
Sir, 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.
May 5, 2020 at 10:34 amHave 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.
You must be logged in to reply to this topic.