In order determine an Actual Ownership of the tax payer, what steps do we take? Do we ask them Legally Binding documents, where percentage of the ownership stated.
Thank you.

Please is child benefit part of the syllabus for june 2021-march 2022? I asked because on the playlist for june 2021-march 2022 on youtube, I couldn’t find the lecture.

Sir, I would like to ask you about example 5. You did correct the tax liability to £2,600. Why? Because you have £1,000 NSI and the tax liability will be £200 and the tax liability from SI £2,600, which means the total tax liabilyty would be £2,800. Am I right? Thank you

Hi Lina,
Because Polly is a basic rate tax payer she can benefit from the first £5,000 SI free of tax, but this is reduced by the amount of NSI being taxed. So NSI taxed is £1,000, meaning her SI has reliefe of (£5,000 – £1,000) = £4,000 * 0%, plus being a basic rate tax payer she is entitled to £1,000 * 0%. This means only £13,000 of the SI is taxed at 20%, ergo the £2,600.

Plus the NSI of £1,000 * 20%, gives a total tax liability of £2,800.

PAYE is included in the income tax. When calculating the tax liability, the full income tax is calculated, which was £12,500. However, when calculating Tax Payable, the PAYE amount of £12,000 was deducted as the company had already paid it on behalf of Mr.Smith, who has to pay the remainder of £500 as tax. Hope that clears things up.

Hello sir
Could you explain the “qualifying interest” & “other trading loss relief” once again please which was covered in the lecture 2.1 and does the qualifying interest & other trading loans relief too are deducted in the same order as the PA or these two are only deducted from the non saving income?

mohamed077 says

Hello sir,

Are all those lectures applicable for December 2021 exam with no changes since they uploaded. ?

myacca1990 says

Yes absolutely as he said in a video .

Fatima.mabusaif says

Is the lectures and notes are valid for Dec2021 ?

zohus1192 says

Good Afternoon, Sir,

In order determine an Actual Ownership of the tax payer, what steps do we take? Do we ask them Legally Binding documents, where percentage of the ownership stated.

Thank you.

ttosechkaa says

Can you clarify why in example 10, the trading income is 102 000, but when we calculate the PA we deduct 106 000 – 100 000, and not 102 000

iamar says

Sir Accrued Income on gilt securities i did not get it. How are we going to pay the tax when we should be reciving it.

kojo says

through the gains from sales proceeds

tolulope says

Please is child benefit part of the syllabus for june 2021-march 2022? I asked because on the playlist for june 2021-march 2022 on youtube, I couldn’t find the lecture.

mohammed31071996 says

See the last lecture on this page.

lina1377 says

Sir, I would like to ask you about example 5. You did correct the tax liability to £2,600. Why? Because you have £1,000 NSI and the tax liability will be £200 and the tax liability from SI £2,600, which means the total tax liabilyty would be £2,800. Am I right? Thank you

crampi says

Hi Lina,

Because Polly is a basic rate tax payer she can benefit from the first £5,000 SI free of tax, but this is reduced by the amount of NSI being taxed. So NSI taxed is £1,000, meaning her SI has reliefe of (£5,000 – £1,000) = £4,000 * 0%, plus being a basic rate tax payer she is entitled to £1,000 * 0%. This means only £13,000 of the SI is taxed at 20%, ergo the £2,600.

Plus the NSI of £1,000 * 20%, gives a total tax liability of £2,800.

Ian

2dop says

Hi Sir,

What is the difference between income tax on employment income and PAYE?

2dop says

The example in lecture 2.1 confused me a bit. PAYE deducted from the salary £ 12,000 and the income tax on the salary calculated is £ 12,500.

abd1999 says

PAYE is included in the income tax. When calculating the tax liability, the full income tax is calculated, which was £12,500. However, when calculating Tax Payable, the PAYE amount of £12,000 was deducted as the company had already paid it on behalf of Mr.Smith, who has to pay the remainder of £500 as tax. Hope that clears things up.

Pratibhapahwa4313 says

Hello sir

Could you explain the “qualifying interest” & “other trading loss relief” once again please which was covered in the lecture 2.1 and does the qualifying interest & other trading loans relief too are deducted in the same order as the PA or these two are only deducted from the non saving income?