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In BPP Chapter 5, In illustration 1 Personal Pension Contribution of 7,200 is grossed up and Basic Rate Band is extended, but the gross amount is not subtracted from the earnings, but in activity 1, the gross contribution is subtracted from earnings and Basic rate band is also extended, WHY CONTRADICTORY TREATMENT?? PLEASE REPELY
May I firstly ask whether you have worked through the OT lectures and study notes – most specifically here Chapter 10?
Although I don’t have the BPP material it appears that you have not understood the difference between personal pension scheme contributions and occupational pension scheme contributions.
I would imagine that in Activity1 the contributions are made into an occupational scheme.
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