This is an extract of our Tax document, which we sell as part of our Business Law and Practice Notes collection written by the top tier of Cambridge And Oxilp And College Of Law students.
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:
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
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
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