Income Tax

Question 1

Types of Non- Savings Income

Answer 1

Earnings, Bonuses, Profits, Commission, Pension, Rental Income from a B2L, FHL, P11D benefits including cars

Question 2

Types of savings income

Answer 2

Interest, fixed interest securities - gilts, corporate bonds, savings element from a PLA, PIBs PSBs

Question 3

Personal Allowance

Answer 3

Personal allowance is lost at £123,700. It is reduced by £1 for every £2 over

Question 4

Order of Income

Answer 4

1) Non-Savings
2) Savings
3) Dividends

Question 5

Gift Aid

Answer 5

Gross up by 20% and extend the basic rate band

Question 6

Adjusted Net Income (ANI)

Answer 6

ANI is important for personal allowance and child benefit

Question 7

Mortgage Interest for B2L

Answer 7

Tax relief available on 50% with 20% tax paid in the remaining 50%

Question 8

Starting Rate Band

Answer 8

This only applies to savings income and only applies to the personal allowance + £5k for non-savings Income

Question 9

Non-Tax Payers

Answer 9

Non-Tax Payers have a basic rate band

Question 10

Professional Subscriptions

Answer 10

Subscriptions to professional bodies is an allowable deduction as is business mileage

Question 11

Dividend Allowance

Answer 11

18/19 £2000

Question 12

Company Car Benefit - how is the calculated?

Answer 12

It is a % of the list price. The % is derived based on the cars CO2 emissions. The list price includes any extras less any co tribute on by the employee up to £5000. There is a 4% surcharge for diesel. The maximum is capped at 37%

Question 13

Personal Allowance - what is it?

Answer 13

18/19 it is £11,850