10 Income Tax

Question 1

Transfer of personal Allowance from nil to brt taxpayer

Answer 1

If non tax payer can give to basic rate tax payer, potentially save £220 (£1,100*20%)

Question 2

Married Couple Allowance

Answer 2

Married couples born <6/4/35 allowance £8,355 reduced £1 for £2 over £27,700
Relief is given at 10%

Question 3

6 Steps tax Calcs

Answer 3

1 Calc all Pre Tax income for year
2 Deduct Relief’s eg RA gross, bus losses
3 Step 3 deduct Per Allowances
4 Calc amount of Bands HRT, BRT etc extending bands with PPP, Gift Aid
5 Calc Tax
6 Deduct Reducers Trans PA, Married couple, VCT.EIS

Question 4

savings Allowance

Answer 4

BRT £1000
HRT £500
ART £0