Someone recently bought our

students are currently browsing our notes.


Tax Notes

LPC Law Notes > Business Law and Practice Notes

Updates Available  

A more recent version of these Tax notes – written by Cambridge And Oxilp And College Of Law students – is available here.

The following is a more accessble plain text extract of the PDF sample above, taken from our Business Law and Practice Notes. Due to the challenges of extracting text from PDFs, it will have odd formatting:

Income Tax

Step 1 Calculate grossed up total of all income

Step 2 Work out net income

Salary Savings Interest (Net Interest x 100/80) Dividends (Net Interest x 100/90) Benefits in Kind Total Income Total Income (Pension Contributions) (Charges on Income) Net Income

Step 3 Work out taxable income: Person allowance = PS10,600 Reduced allowance for income over
PS100,000 =
PS10,600 - (Net Income PS100,000) 2

Net Income (Personal Allowance) Net Income

Step 4 Apply tax rates to n0n-savings, savings and dividends using the tax rates provided. Use the tax jug, taxing each part on top of the other.

Step 5 Add all taxes together to create the Total Tax Liability

Non-Savings Income Tax Savings Income Tax Dividend Income Tax Total Tax Liability

Step 6 Find the difference between the net and gross savings and deduct for the tax at source

Total Tax Liability (Tax Deducted at Source) Total Tax Payable to HMRC

Buy the full version of these notes or essay plans and more in our Business Law and Practice Notes.

More Business Law And Practice Samples