Principles of tax Flashcards
name the types of exempt income
the interest of national savings certificate
income from ISAs
betting competition, lottery and premium bond winnings
scholarships
income tax repayment interest
what is net income
chargeable income before deducting a personal allowance
what is taxable income
net income after deducting a personal allowance
how much PA entitled to
11500
how to work out PA
PA - 1/2(income-100000)
what is tax liability
the total amount of income due after taxpayer
what is tax payable/repayable
amount fo income taxpayer under self-assessment taking into account tax deducted at source
tax liability x
PAYE at source (x)
= tax payable/ repayable
what is gift aid
tax relief at cash donations
how to work out gift aid
amount donated * 100/80 =X
X+ rate bands to extend them
how much Married Couples Allowance entitled to
8445 so tax reducer is 845
this changes income reeduces by 1£ for every 2£ over when net income exceeds 2800
BUT minimum amount is £3260
when does marraige allowance apply and how to work out
married couples allowance not claimed transferee must be absic rate payer relief given reducing tax payable receipent at basic rate SO income -PA =X *20% = ANS - 230 = income tax laibility
what is a credit voucher
exchangeable for cash
what is a credit token
obtain money goods or services co
how to assess basic rental benefit
higher of annual value or any rent paid by employer
what is the additional yearly beenfit for accommodation
(cost-75000) * official rate interest of start of year
normally 2.5%
cost = orignal cost and improvements
what is the rule for using market value
if property acquired more than 6 yeards bdefore first provided use market value when first provided then orignal cost
what is formula for taxable ampunt of car
% * list price
% = (co2-95)/5
what is the fuel benefit
22600 * %
no reduction for employers own contributions
what is taxable amount for vans
annual amount 3230
unl;ess zero emissions then 646
fuel amount is 610
what is taxable amount for assets for private use
- 20% * mv
2. rent paid by employer
PAYE codes
PA - overpaid tax =A
taxablke benefit - underpaid tax = B
A-B = +ve
remove last digit
add letter
L = basic PA
A-B= -ve
remove last digit
minus 1
add k at start
