Income Tax Computation Flashcards
(15 cards)
What is the Personal allowance
£12,570, reduced by £1 for each £2 over £100k. Nil at £125,140.
What is personal allowance calculation based on
ANI
What is ANI
Net income less gross gift aid donations and gross personal pension contributions
What are the Tax rates on dividends
BRB £0 - £37,700 8.75%
HRB £37,701 - £125,140 33.75%
ARB £125,140+ 39.35%
How much Dividend income is taxed at 0%
First £500
Which qualifying loans are tax deductible
Loan to buy P&M for use of partnership/employment (interest deductible for 3 years)
Loans to buy an interest in a close company
Loans to invest in a partnership
Loans to pay IHT
What is the Cap for qualifying interest payment reliefs
Higher of
£50,000
and
25% of adjusted total income
What is adjusted total income
Total income plus payroll giving less gross personal contributions
What is the Child benefit tax charge threshold
ANI over £60,000
What is the charge imposed for child benefit
1% of child benefit received for every £200 of ANI between £60k and £80k
What is the Rate of child benefit for eldest and other children
£25.60 eldest
Other £16.95
What is the savings income nil rate band
£1,000 for basic rate tax payers
£500 for higher rate tax payers
What are the Gift aid implications for basic rate tax payer
Relief is given at time of payment by only paying 80% of total donation
No adjustment to tax calc
What are the Gift aid implications for higher and additional rate tax payer
Relief is given at time of payment by only paying 80% of total donation
Basic and higher rate band increased by gross of the gift
