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In answer is calculated Income tax from non-saving income 32,935X20%, but the base rate 20% should be calculated up to income level 31,785. Why the base rate is calculated from a bigger amount than the limit?
Look at W1 in the answer where you will see the calculation of the extended basic rate band, which means that all the non savings income falls within the revised basic rate band
I’m sorry, but I still did not get it. In which lecture it is told about extended basic tax band? In which situation the basic tax band is extended?
The first reference to the extension of the basic and if necessary the higher rate bands is in Chapter 2, page 13, Section 5. This explains the treatment of gift aid payments (and also states the same treatment applies to personal pension contributions). Examples 13,14 and 15 all deal with gift aid payments and the extension of the rate bands – did you work through these examples with the lectures????
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