1) Mr.
r. A has following incomes for the year: - Trading Income 16,000 - Pension Income 28,000 - REIT dividend 12,000
Income tax return: Non saving
Trading income 16000
Pension income 28000
REIT Dividend 15000
Total income 59000
Personal allowance -12570
Taxable income 46430
Tax
37700 0.2 7540
8730 0.4 3492
Tax liability 11032
Tax credit -3000
Tax payable 8032
Mr. Z has following Income for the year: -
2)
Trading Income of 18,000 - Income received from DT 8,000 - Dividend Income
Income tax return: Non saving Dividend
Trading income 18000
Income received of DT 14545.45455
Dividend income 23000
Total income 32545.45455 23000
Personal allowance -12570
Taxable income 19975.45455 23000
Tax
N/S
19975.4545454545 0.2 3995.09090909
Dividend
23000
500 0 0
17224.5454545455 0.0875 1507.14772727
37700
5275.45454545454 0.3375 1780.46590909
Tax Liability 7282.70454545
Tax credit -6545.45454545
Tax Payable 737.25
Mr. N has following Incomes during the year:
3)
• Employment Income of 22,000 • Income from DT of 8,000 • Income from IIP 8,500 (IIP earns from Interest Inco
Income tax return: Non saving Saving Dividend
Employment income 22000
Income received of DT 14545.5
Income from IIP 10625
Income from bank interest 16500
Dividend income 12500
Total income 36545.5 27125 12500
Personal allowance -12570
Taxable income 23975.5 27125 12500
Tax
23975.5*20% 4795
500*0%=0 0
13225*20%=2645 2645
13400*40%=5360 5360
500*0%=0 0
12000*33.75%=3881 4050
tax liability 16850
tax credit -8670.45 6545.45+2125
tax payable 8179.55
4) Mr. X has following incomes during the year
• Employment Income 50,000 • Property Income 15,000 • He made a Qualifying Donation of 16,000 • Qualifying
Income tax return: Non saving
Employment income 50000
Property income 15000
Total 65000
Qualifying Loan interest -3000
Net income 62000 --> Net income less than 100,000 therefore no need to review the Perso
Personal allowance -12570
Taxable income 49430
Qualifying donation 20000
Tax bands extension
1 --------> 37700 + 20000 57700
57700 -----> 125140 + 2000 145140
145140 -------> x
TAX:
Non saving 49430
49430 0.2 9886
Mr. N has following Incomes for the year
5)
o Employment Income 32,000 o Trading Income 50,000 o Income from DT 8,000 o Income from IIP 3,400 (Non-Sa
Income tax return: Non saving Dividend
Employment income 32000
Trading income 50000
Income from DT 14545.45455
Income from IIP (Non saving 4250
Dividend income 24000
Total income 100795.4545 24000
Qualifying loan interest -6000
Net income 94795.45455 24000 -> the Net income is exceeding the 100,000 threshold
Personal allowance -7859.772727
Taxable income 86935.68182 24000
Personal allowance review
Net income 118795.4545
Gross qualifying donation -9375
Gross PPC 0
ANI 109420.4545
Limit -100000
Excess 9420.454545
Personal allowance 12570
9420.45/2*1 -4710.227273
Remaining Personal allown 7859.772727
Tax band extension: 9375
1 --------> 37700 + 9375 47075
47075 -----> 125140 + 9375 134515
134515 -------> x
Tax:
Non saving 86935.68182
47075 0.2 9415
39860.6818181818 0.4 15944.2727273
Dividend 24000
500 0 0
23500 0.3375 7931.25
Tax liability 33290.5227273
Tax credit -6545.45454545
-850
Tax payable 25895.0681818
me 28,000 - REIT dividend 12,000
500 (IIP earns from Interest Income) • Income from Bank Interest is 16,500 • Dividend Income 12,500
Donation of 16,000 • Qualifying Loan Interest expense is 3,000
fore no need to review the Personal allowance
o Income from IIP 3,400 (Non-Saving source) o Dividend Income 24,000 o He paid Qualifying Loan Interest of 6,000 o He made Qualifying
exceeding the 100,000 threshold and thus the Personal allowance will need to be reviewed
rest of 6,000 o He made Qualifying donations of 7,500.