Solutions Manual for Principles of Taxation
Law 2024 By Black, Obst, Hanegbi,
Jogarajan, Sadiq, Walpola, Clements,
Krever (All Chapters 100% Original
Verified, A+ Grade)
Between what dates do tax years run? - ANSWER 6th April to 5th April
Between what dates does the 2019/20 tax year run? - ANSWER 6th April 2019 to
5th April 2020
On what types of taxes are partners jointly liable? - ANSWER - Income tax of
employees
- NIC's as employer
- VAT supplier
What types of taxes do companies pay? - ANSWER - Corporation tax
- VAT
- Income tax of employees (PAYE)
- NIC's
From what dates does financial year 19 run? - ANSWER 1 April 2019 - 31 March
2020
In the UK, what are the 6 types of exempt income? - ANSWER - Interest on
national savings certificates
- Income from ISA's
- Betting, competition, lottery and premium bond winnings
- Some SS Benefits (e.g. housing benefit)
- Scholarships
- Tax repayments
What is income taxed at source? - ANSWER PAYE (pay as you earn) - is deducted
by the employer before payment of the net amount to the employee
What types of income are received without deduction at source? - ANSWER -
Trading income
- Property income
- Savings income
- Dividend income
What is the basic personal allowance for 19/20? - ANSWER 12,500 (deduct from
non-savings first, then savings, then dividend)
At what income level does personal allowance become 0? - ANSWER 125,000 per
year
, How are dividends taxed? - ANSWER - First 2000 = 0%
- Next 35,500 = 7.5%
- 37,500 - 150,000 = 32.5%
- 150,000+ = 38.1%
How is savings income taxed? - ANSWER - If NSI is <5000, then (5000 - NSI) = 0%
- If basic rate payer next 1000 = 0%
- If higher rate payer next 500 = 0%
- Remaining is taxed at 20%, 40%, 45% (as per bands)
How do you compute tax payable/repayable? - ANSWER - First, calculate liability
on all income
- Second, deduct tax suffered at source (PAYE)
How is gift aid calculated) - ANSWER - Value of donation * 1.25
- Extend basic and higher rate band by GROSS donation
Can gift aid be carried back? - ANSWER Yes - donation made in 19/20 can be
carried back to get relief in 18/19 (deadline: no later than 31st January 2020)
How does marriage allowance work? - ANSWER - Spouse/civil partner may
transfer 1,250 of PA to partner
- Can only transfer is partner is a BASIC RATE PAYER
- Transferee deducts (transferred allowance * 20%) from their liability
What 4 things make up employment income? - ANSWER - Wages/bonuses
- Benefits
- Pensions
- Expense allowances/reimbursements
What is the receipts basis of assessment? - ANSWER Income received between
6/4/19 - 5/4/20 is taxable in 19/20
When is money received? - ANSWER Earlier of
- Payment made
- Entitled to payment
When are benefits received? - ANSWER When actually received
What are the general rules for taxable benefits? - ANSWER - Always time apportion
if only available for part of the year
- Always deduct employee contribution (except for fuel)
What are the general rules for voucher benefits? - ANSWER - Benefit = the cash
equivalent
- Is voucher is exchangeable - benefit = cost to employer
Law 2024 By Black, Obst, Hanegbi,
Jogarajan, Sadiq, Walpola, Clements,
Krever (All Chapters 100% Original
Verified, A+ Grade)
Between what dates do tax years run? - ANSWER 6th April to 5th April
Between what dates does the 2019/20 tax year run? - ANSWER 6th April 2019 to
5th April 2020
On what types of taxes are partners jointly liable? - ANSWER - Income tax of
employees
- NIC's as employer
- VAT supplier
What types of taxes do companies pay? - ANSWER - Corporation tax
- VAT
- Income tax of employees (PAYE)
- NIC's
From what dates does financial year 19 run? - ANSWER 1 April 2019 - 31 March
2020
In the UK, what are the 6 types of exempt income? - ANSWER - Interest on
national savings certificates
- Income from ISA's
- Betting, competition, lottery and premium bond winnings
- Some SS Benefits (e.g. housing benefit)
- Scholarships
- Tax repayments
What is income taxed at source? - ANSWER PAYE (pay as you earn) - is deducted
by the employer before payment of the net amount to the employee
What types of income are received without deduction at source? - ANSWER -
Trading income
- Property income
- Savings income
- Dividend income
What is the basic personal allowance for 19/20? - ANSWER 12,500 (deduct from
non-savings first, then savings, then dividend)
At what income level does personal allowance become 0? - ANSWER 125,000 per
year
, How are dividends taxed? - ANSWER - First 2000 = 0%
- Next 35,500 = 7.5%
- 37,500 - 150,000 = 32.5%
- 150,000+ = 38.1%
How is savings income taxed? - ANSWER - If NSI is <5000, then (5000 - NSI) = 0%
- If basic rate payer next 1000 = 0%
- If higher rate payer next 500 = 0%
- Remaining is taxed at 20%, 40%, 45% (as per bands)
How do you compute tax payable/repayable? - ANSWER - First, calculate liability
on all income
- Second, deduct tax suffered at source (PAYE)
How is gift aid calculated) - ANSWER - Value of donation * 1.25
- Extend basic and higher rate band by GROSS donation
Can gift aid be carried back? - ANSWER Yes - donation made in 19/20 can be
carried back to get relief in 18/19 (deadline: no later than 31st January 2020)
How does marriage allowance work? - ANSWER - Spouse/civil partner may
transfer 1,250 of PA to partner
- Can only transfer is partner is a BASIC RATE PAYER
- Transferee deducts (transferred allowance * 20%) from their liability
What 4 things make up employment income? - ANSWER - Wages/bonuses
- Benefits
- Pensions
- Expense allowances/reimbursements
What is the receipts basis of assessment? - ANSWER Income received between
6/4/19 - 5/4/20 is taxable in 19/20
When is money received? - ANSWER Earlier of
- Payment made
- Entitled to payment
When are benefits received? - ANSWER When actually received
What are the general rules for taxable benefits? - ANSWER - Always time apportion
if only available for part of the year
- Always deduct employee contribution (except for fuel)
What are the general rules for voucher benefits? - ANSWER - Benefit = the cash
equivalent
- Is voucher is exchangeable - benefit = cost to employer
