Chapter 2 - Basic income tax computation

Question 1

When is the tax year

Answer 1

Ends on 5 April and begins the next day. You are assessed on income arising in that tax year.

Question 2

What are the types of Non-savings Income?

Answer 2

• Trading Income
• Employment Income
• Pension Income
• Property Income

Question 3

What is Personal Allowance and how can it be reduced?

Answer 3

£12,570 deducted in the order of NSI, SI, DI. It can be reduced when income is over £100,000 and zero when over £125,140. The formula is 50% x (ANI - £100,00).