it runs from by pen the 6th of April to the 5th of April so the tax year that we are dealing with is 2324 and it runs from the 6th of April 23 to the 5th of April 24

bring all the various sources of income that an individual might have into one computation and that computation then will we'll use to calculate how much time tax needs to be paid on that that income

the calculation of the liability now that's different that's what they're liable for but they may pay a different figure because they may have paid paid tax at Source on some of their um some forms of income

normally divided the computation into three columns non savings income says their employment income or trading profits for self-employed property income pension income

savings income which is from the bank or Building Society

dividend income

examiner has prepared it with that in mind that's how it looks in your manual and that's how the model answer for the examiner the marker that's what um it will look like so well presented neatly laid out okay now I appreciate it's on a computer on a spreadsheet so make sure you put the column headings in that you put lines in to divide the income where it's necessary and that it's well labeled and presented

expect it to look like that your um examiner has prepared it with that in mind that's how it looks in your manual and that's how the model answer for the examiner the marker that's what um it will look like so well presented neatly laid out okay now I appreciate it's on a computer on a spreadsheet so make sure you put the column headings in that you put lines in to divide the income where it's necessary and that it's well labeled and presented

I want you to do is to either right at the bottom this income is exempt I.
04:50
E I know the rule I've applied it or add it into the computation and right next to it exempt and then put zero in you have shown therefore you understand the rule and you understand the impact to the rule tax is strange in a lot of Senses

in an exam this is about the process do you know the rule can you apply the rule and have you followed through on the process
05:26
and done the calculations every time you put something through your Cal calculator you must write it down or type it somewhere on your answer because there are marks for the process the way you've answered it not necessarily for the answer okay

you tax the non- savings income first then you tax the savings income and then you top slice that's a term for tax tax term you top slice the dividend income it is always taxed last okay your personal allowance is your taxfree amount and the rate is found in the tax tables

tax liability that is how much income tax is due on that income that you calculated in the first computation however we need to now take off anything and I mentioned pay as you earn so when you have a job the uh employer will take income tax from and National Insurance contributions from your gross income and you will get the
10:17
net figure so the gross income is the one that goes in the calculations the tax that you've suffered at source that goes at the bottom of the calculation