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TX Accumulated Knowledge > B > Flashcards

B Flashcards

1
Q

Steps for calculating income tax liaiblity?

A

Deduct personal allowance from employment income

Multply by income tax rate

Deduct transferable if available (when deducting multiple by rate)

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2
Q

Personal allowance when net income is £105000?

A

£12570 - (£105000 - £100000)*0.5

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3
Q

Tax payable calculation?

A

Tax liability - PAYE

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4
Q

What does a tax liaiblity include?

A

Non-savings income

Savings income

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5
Q

Get starting rate?

A

5000 - NSI

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6
Q

Savings nil rate band for basic?

A

1000

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7
Q

When is starting rate not applicable?

A

If non-savings income is in excess of £5000

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8
Q

If less than £2000 dividend income?

A

0% applies to all

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9
Q

Calculate higher rate savings income?

A

500 @ 0%
(37700 - NSI - 500) @ 20%
(total income - 37700 - (dividend income * 0%))

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10
Q

If there’s no non-savings income and PA?

A

PA applies to savings income instead

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11
Q

PA tax reduction?

A
  • from non-taxpayer income computation

Deduct £252 from income tax liability

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12
Q

How to determine savings nil band rate?

A

Use the total income as a reference

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13
Q

When question says paid in a gift aid donation?

A

It is the net figure. Must be grossed up by multiplying 100/80

Then extend the rate bands (e.g. £37700 becomes £39700). Both if additional

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14
Q

Gross pension payments?

A

Deducted from net income

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15
Q

Gift aid donation and ANI?

A

Reduces the ANI

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16
Q

Paying interest on a loan?

A

Qualifying relief

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17
Q

1st step in residence?

A

Automatic overseas test

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18
Q

2nd step in residence?

A

Does individual satisfy any of automatic UK tests

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19
Q

3rd step in residence?

A

Does individual satisfy sufficient ties test

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20
Q

Calculate child benefit income tax charge (between £50000 and £60000)

A

Get excess by - £50000

Divide result by 100

Multiply by result * 1% * child benefit

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21
Q

When ANI > £125140?

A

No PA

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22
Q

Property income?

A

Cash basis is the best way to go

23
Q

Rent received, expenses paid?

A

WHAT IS HAPPENING

24
Q

May 2024?

A

Tax year

25
Q

In advance?

A

Received at beginning of the quarter

26
Q

In arrears?

A

Received at end of the quarter

27
Q

Date in may?

A

Represents the next tax year

28
Q

Property income calculation?

A

Income - expenses. is deducted in non-savings income

29
Q

Total expenses > rental income

A

Is nil

30
Q

Mortgage interest treatment?

A

Relief @ 20%

31
Q

Rent a room cash basis calculation? (Normal)

A

Gross rent - expenses

32
Q

Rent a room election calculation?

A

Gross rent - rent a room relief @ 7500

33
Q

Assessable premium calculation?

A

Premium - (2% * n - 1 * A). Where n is length of lease and A is amount

34
Q

Premium and annual rent?

A

Are added when calculating property income

35
Q

Calculate trading profit deduction for traders?

A

Property premium income assessment on landlord / life of lease

36
Q

Mortgage payment interest?

A

Is a tax reducer

37
Q

Expenditure paid in respect of new washer-dryer?

A

Cost of a new washing machine equivalent (replacement) - disposal of an old washing machine

38
Q

Is new washer dryer cost included?

A

No

39
Q

Maintenance expenditure?

A

Deducted from income

40
Q

Mortgage interest charges?

A

Attract tax relief

41
Q

Are improvements deductible?

A

No

42
Q

Allowable expenses?

A

Deducted from rent received

43
Q

When rent-a-room relief is available?

A

Use that

44
Q

When deposit is used to pay for cleaning of the property?

A

It is added to the tax liability

45
Q

Maintenance expenditure?

A

Deductible

46
Q

Renting a room?

A

Represents rent received

47
Q

Are late rent payments recorded?

A

Yes if within tax year

48
Q

Annual rental paid in a property income assessment?

A

Added to the premium

49
Q

Price of original - proceeds of original

A

VALID

50
Q

Insurance?

A

Is deductible

51
Q

Does AIA apply to cars?

A

No

52
Q

WDA depreciation method?

A

Reducing balance

53
Q

What is only capital allowance method which isn’t time apportioned?

A

FYA

54
Q

AIA and WDA?

A

Both time-apportioned

TX Accumulated Knowledge (19 decks)

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