6. Calculating Income Tax

Question 1

What is the tax liability proforma?

Answer 1

Non-savings income:
20%
40%
45%

Savings income:
0%
20%
40%
45%

Dividend income:
0%
7.5%
32.5%
38.5%
TAX LIABILITY 

Less: PAYE
TAX PAYABLE

Question 2

How to calculate the gift aid BRB extension:

Answer 2

Donation made X 100/80

Question 3

How to calculate the personal pension BRB extension:

Answer 3

Pension contribution X 100/80

Question 4

What is the maximum pension contribution to receive tax relief on?

Answer 4

The higher of £3,600 and 100% of their earnings.

Overall cap of £40,000.