Question

Daisy had the following income for the tax year 2019/20.

1) Gross Salary - £103000(her employer deducted PAYE of £32600)

2) Property income - £16000

3) bank interest received - £1600

4) premium bond prize - £100

The property income consisted of:

Property business income from letting out a furnished house £9000

income from letting out a room in Daisy's house. £7000

prepare the income tax computation for 2019/20, showing the tax liability and the tax due to be paid.

Answer 1

Tax Computation for 2019/2020 For a Single Individual Employee Tax Computation Saving Total Non-Saving Earned Income GBP GBP GBP Empolyement Income Property Income Bank Deposit Interest Total Earned Income 103,000 103,000 16,000 16,000 1,600 1,600 119,000 1,600 120,600 Less:- Personal Deductions Personal Allowance (Whare Available)* 12,500 (12,500) Less: Phase Out Where Income Exceeds GBP 1,00,000 Taxable Net Income 119,000 1,600 120,600 Tax Calulation Taxable Net Income Tax Due :- GBP 0 to 12,500 @ 0% GBP 12,501 to 50,000 @ 20% GBP 50,001 to 150,000 @ 40% Non-Saving 119,000 Saving 1,600 Total 120,600 7,500 27,600 Less :- Personal Saving Allowance (500) Tax Due : 440 Total Tax Due :- 35,100 440 35,540 32,600 Less:- PAYE Total Tax Due to Paid 2,940 Note1:- Since Premium Bond Prizes are Tax Free, It is Not Required to Disclosed Note 2:- Since Daisy is a Taxed Higher Rate 40% Saving Net Income is Taxed at 40% Note 3:- Higher Rate Taxpayers Can Earn £500 Worth of Interest Before Paying Tax on their Savings