Hello
I am doing some past exams questions and I noticed that there are times when I would have to work out the tax suffered at source. When should I do that? Is it only when I see a PAYE deduction?
Also when and how should I use the gift aid contributions?
Ask the Tutor ACCA TX-UK
When to include the Gift Aid contributions tax suffered at source
In preparing the income tax computation you may be required to compute either income tax liability which is before deducting any tax suffered at source or income tax payable which is after deducting tax suffered at source.
Gift aid contributions are used in calculating adjusted net income and are also used to extend the basic and higher rate bands,
I would recommend listening to the OT lectures - specifically here chapter 2
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