Chapters 1 & 2: IT Basics Flashcards
1
Q
IT Basics
The Main Taxable Social Security Benefits are:
A
- The State Pension; and
- Carer’s Allowance
2
Q
IT Basics
Who is the PA Available to?
A
UK Residents.
3
Q
IT Basics
How is the Personal Allowance Allocated?
A
Against Non-Savings in Priority.
Achieves the Greatest Reduction in the Tax Liability.
4
Q
IT Basics
What is Adjusted Net Income?
A
Net Income
Less: Gross PPCs
Less: Gross Gift Aid Donations
5
Q
IT Basics
Tax Paid at Source is Deducted to Find?
A
Tax Due or Repayable.
Such as PAYE.
6
Q
IT Basics
What is the PA for 2023/24?
A
£12,570.
7
Q
IT Basics
When is the PA Abated?
A
If Adjusted Net Income is > £100,000.
The PA is Then Reduced by 1/2 the Excess.
8
Q
IT Basics
The Main Rates of Tax for Non-Savings Income are as Follows:
A
- First £37,700 @ 20% (Basic Rate)
- Next £87,440 @ 40% (Higher Rate)
- Rest @ 45% (Additional Rate)
