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There is an example about Pension and tax computation. Don’t really understand why his trading profit, relevant earnings and adjusted net income are £350k? Thanks
“Villa has a trading profit assessment for the 2020/21 tax year of £250,000 and made a contribution into a personal pension scheme during this year of £70,000 (gross). Villa joined the pension scheme in 2019/20 in which year he made gross personal pension contributions of £10,000 and had net income of £90,000 .
Compute the annual allowance charge that will arise in 2020/21 and prepare an Income tax computation for Villa showing his Income Tax liability for the tax year”.Apologies for delay in reply and for the typing error in the first line of the example where the trading profit should have been given as £350,000 not £250.000. If of course you had watched the lecture you would have seen that this error was identified and the trading income figure adjusted to £350,000.
You should use the lectures with the study notes
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