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katarinaxt
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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”.
Tax Tutor
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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
katarinaxt
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