Hi,
Is it acceptable to do working such as the scale reduction of Personal Allowance above £100K in a formula instead of showing the working step by step working?
Ask the Tutor ACCA TX-UK
TX Section C Workings
Any numbers that you compute for use within your answer - you need to show the calculation as I have shown in the Study Notes - so that in your example you would start by taking the net income from your Income Tax computation and deducting the gross amount of any gift aid payments and personal pension contributions to compute adjusted net income (ANI).
You would then compute the excess of ANI above the 100,000 income limit to establish the deduction in the PA from which you can then calculate the revised PA
@Taxtutor said: Any numbers that you compute for use within your answer - you need to show the calculation as I have shown in the Study Notes - so that in your example you would start by taking the net income from your Income Tax computation and deducting the gross amount of any gift aid payments and personal pension contributions to compute adjusted net income (ANI). You would then compute the excess of ANI above the 100,000 income limit to establish the deduction in the PA from which you can then calculate the revised PAThanks. Very helpful.
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