SEGREGATION OF INCOME INTO NON-SAVINGS, SAVINGS AND DIVIDEND COLUMN

MR AHMED
INCOME TAX COMPUTATION
21/22
NSI SI D
EMPLOYMENT INCOME 20000
TRADING PROFIT 8000
RENT 3000
INTEREST 1000
DIVIDEND 5000

TOTAL INCOME 31000 1000 5000

INTEREST PAID ON QUALIFYING LOAN

MR HASSAN
INCOME TAX COMPUTATION
21/22
NSI SI D
EMPLOYMENT INCOME 23000
TRADING PROFIT 15000
RENT 12000
4000 INTEREST 3000
DIVIDEND 10000

TOTAL INCOME 50000 3000 10000

LESS:INTEREST PAID (4000)

NET INCOME 46000 3000 10000

MR HASSAN
INCOME TAX COMPUTATION
21/22
NSI SI D
EMPLOYMENT INCOME 23000
TRADING PROFIT 15000
RENT 12000
54000 INTEREST 3000
DIVIDEND 10000
 TOTAL INCOME 50000 3000 10000
LESS:INTEREST PAID (50000) (3000) (1000)

NET INCOME 0 0 9000

MR HASSAN
INCOME TAX COMPUTATION
21/22
NSI SI D
EMPLOYMENT INCOME 23000
TRADING PROFIT 15000
RENT 12000
67000 INTEREST 3000
DIVIDEND 10000

TOTAL INCOME 50000 3000 10000

LESS:INTEREST PAID (50000) (3000) (10000)

NET INCOME 0 0 0

PERSONAL ALLOWANCE

MR HASSAN
INCOME TAX COMPUTATION
21/22
NSI SI D
EMPLOYMENT INCOME 23000
TRADING PROFIT 15000
RENT 12000
4000 INTEREST 3000
DIVIDEND 10000

TOTAL INCOME 50000 3000 10000

LESS:INTEREST PAID (4000)

NET INCOME 46000 3000 10000

LESS:PA (12570)

TAXABLE AMOUNT/ TAXABLE INCOME 33430 3000 10000

 MR HASSAN
INCOME TAX COMPUTATION
21/22
NSI SI D
EMPLOYMENT INCOME 7000
TRADING PROFIT 0
RENT 0
INTEREST 500
DIVIDEND 1500

TOTAL INCOME 7000 500 1500

LESS:INTEREST PAID (1000)

NET INCOME 6000 500 1500

LESS:PA (6000) (500) (1500)

TAXABLE AMOUNT/ TAXABLE INCOME 0 0 0

TAX LIABILITY

MR HASSAN
INCOME TAX COMPUTATION
21/22
NSI SI D
EMPLOYMENT INCOME 20000
TRADING PROFIT 15000
RENT 5000
1000 INTEREST 0
DIVIDEND 0
TOTAL INCOME 40000 0 0
LESS:INTEREST PAID (1000)
NET INCOME 39000 0 0
LESS:PA (12570)
TAXABLE AMOUNT/ TAXABLE INCOME 26430 0 0

TAX LIABILITY = 26430*20% 5286

MR RAZA
INCOME TAX COMPUTATION
21/22
NSI SI D
EMPLOYMENT INCOME 38000
TRADING PROFIT 22000
RENT 5000
INTEREST 0
DIVIDEND 0
TOTAL INCOME 65000 0 0
LESS:INTEREST PAID (2000)
NET INCOME 63000 0 0
LESS:PA (12570)
TAXABLE AMOUNT/ TAXABLE INCOME 50430 0 0

TAX LIABILITY = 37700*20% 7540

(50430-37700)*40% 5092
12632

TAXABLE AMOUNT/ TAXABLE INCOME 175000 0 0

TAX LIABILITY = 37700*20% 7540

112300*40% 44920
(175000-150000) 25000*45% 11250
63710

NSI SI D
TAXABLE AMOUNT/ TAXABLE INCOME 168000 12000 0
TAX LIABILITY
NSI
37700*20% 7540
112300*40% 44920
(168000-150000)*45% 8100
SI
12000*45% 5400

TAX LIABILITY 65960

NSI SI D TOTAL
EMPLOYMENT INCOME XX X
PROFIT XX X
RENT XX X
INTEREST XX X
DIVIDEND XX X
TOTAL INCOME XX XX XX XX
LESS:INTEREST PAID (X) (X)
NET INCOME XX XX XX XX
LESS:PA (X) (X)
TAXABLE AMOUNT 188000 12000 0 200000

NSI
37700*20% 7540
112300*40% 44920
(188000-150000)*45% 17100
SI
12000*45% 5400

TAX LIABILITY 74960

NSI SI D
TAXABLE AMOUNT 130000 15000 0 145000

NSI
37700*20% 7540
(130000-37700)*40% 36920
SI
(15000-500)*40% 5800

TAX LIABILITY 50260

NSI SI D
TAXABLE AMOUNT 100000 22000 0 122000

NSI
37700*20% 7540
(100000-37700)*40% 24920
SI
(22000-500)*40% 8600

TAX LIABILITY 41060

 NSI SI D
TAXABLE AMOUNT 26000 22000 0 48000

NSI
26000*20% 5200
SI
LEFTOVER BASIC BAND
(37700-26000)=11700
BASIC BAND (11700-500)*20% 2240
HIGHER BAND (22000-11700)=10300*40% 4120
TAX LIABILITY 11560

NSI SI D
TAXABLE AMOUNT 18000 36000 0 54000

NSI
18000*20% 3600
SI
LEFTOVER BASIC BAND
(37700-18000)=19700
BASIC BAND (19700-500)*20% 3840
HIGHER BAND (36000-19700)=16300*40% 6520
TAX LIABILITY 13960

NSI SI D
TAXABLE AMOUNT 18000 6000 0 24000

NSI
18000*20% 3600
SI
(6000-1000)*20% 1000

TAX LIABILITY 4600

NSI SI D
TAXABLE AMOUNT 22000 4000 15000 41000

NSI
22000*20% 4400
 SI
(4000-500)*20% 700
DIVIDEND
LEFTOVER BASIC BAND
(37700-26000)=11700
BASIC BAND (11700-2000)*7.5% 728
HIGHER BAND (15000-11700)*32.5% 1072
TAX LIABILITY 6900

NSI SI D TOTAL
TAXABLE AMOUNT 0 8000 12000 20000

NSI 0

SI
5000*0 0
1000*0 0
(8000-5000-1000)*20% 400

D
(12000-2000)*7.5% 750

TAX LIABILITY 1150

NSI SI D TOTAL
TAXABLE AMOUNT 2000 7000 15000 24000

NSI
2000*20% 400
SI
3000*0 0
1000*0
(7000-3000-1000)*20% 600

D
(15000-2000)*7.5% 975

TAX LIABILITY 1975

MR ALI
INCOME TAX COMPUTATION
21/22
NSI SI D
EMPLOYMENT INCOME 28000
PROFIT 14000
RENT 5000
BANK INTEREST 1000
INTEREST FROM ISA 0
DIVIDEND 10000
TOTAL INCOME 47000 1000 10000
LESS:INTEREST PAID 0
NET INCOME 47000 1000 10000
LESS:PA (12570)
TAXABLE INCOME 34430 1000 10000

NSI
34430 6886
SI
(1000-500) 100
D
LEFTOVER BASIC BAND
2270
(2270-2000) 20
HIGHER BAND
7730 2512

TAX LIABILITY 9518

IF PAYE IS £8000
 LESS:PAYE (8000)
TAX PAYABALE 1518
IF PAYE IS £10000
TAX LIABILITY 9518
LESS:PAYE (10000)
TAX PAYABLE/ REFUNDABLE (482)
TAX REPAYABLE

GIFT AID DONATION

1) NSI SI D
TAXABLE INCOME 45000

NSI
37700 7540
(45000-37700) 2920

TAX LIABILITY 10460

2) NSI SI D
TAXABLE INCOME 45000

NSI
39700 7940
(45000-37900) 2120 NT
MOU
S A
OS
TAX LIABILITY 10060 H GR N
T O
WI ATI
AND DON
B D
SIC AI
SAVING 400 F BA GIFT OR
N O OF
N SIO
TE
EX

PAID (NET) GIFT AID DONATION

NET
SILENT (NET) INDIVIDUAL GROSS CHARITY
GROSS CONTRIBUTION 2000 80% 1600
(GROSS)

HMRC 20% 400

 2000

EFFECT OF ADJUSTED NET INCOME (ANI) ON PERSONAL ALLOWANCE

NSI SI D
EMPLOYMENT INCOME 70000
PROFIT 10000
RENT 2000
BANK INTEREST 5000
DIVIDEND 7000
TOTAL INCOME 82000 5000 7000
LESS:INTEREST PAID (1000)
NET INCOME 81000 5000 7000
LESS:PA (W) (12570)
TAXABLE INCOME 68430 5000 7000

NSI SI D
EMPLOYMENT INCOME 80000
PROFIT 10000
RENT 2000
BANK INTEREST 5000
DIVIDEND 7000
TOTAL INCOME 92000 5000 7000
LESS:INTEREST PAID (1000)
NET INCOME 91000 5000 7000
LESS:PA (W) (11070)
TAXABLE INCOME 79930 5000 7000

NSI SI D
EMPLOYMENT INCOME 80000
PROFIT 20000
RENT 1000
BANK INTEREST 20000
DIVIDEND 5140
TOTAL INCOME 101000 20000 5140
LESS:INTEREST PAID (1000)
NET INCOME 100000 20000 5140
LESS:PA (W) 0
TAXABLE INCOME 100000 20000 5140

CHILD CARE BENEFIT

ANI = (TOTAL INCOME - INTEREST PAID) - GIFT AID DONATION (GROSS) - PERSONAL PENSION SCHEME (GR

MR HASSAN TOOK HELP FROM GOVT. £1800

INCOME TAX COMPUTATION
21/22
NSI SI D
EMPLOYMENT INCOME XX
PROFIT XX
RENT XX
INTEREST XX
DIVIDEND XX
TOTAL INCOME 22000 1000 3000
LESS:INTEREST PAID (1000)
NET INCOME 21000 1000 3000
LESS:PA (12570)
TAXABLE INCOME 8430 1000 3000
NSI (8430) 1686
SI (1000-1000) 0
D (3000-2000) 75
TAX LIABILITY 1761
CHILD BENEFIT CHARGE 0
REVISED TAX LIABILITY 1761
LESS:PAYE (XX)
TAX PAYABLE 1761

ANI
(25000-0-0) 25000
MR HASSAN TOOK HELP FROM GOVT. £2400
INCOME TAX COMPUTATION
21/22
NSI SI D
EMPLOYMENT INCOME XX
PROFIT XX
RENT XX
INTEREST XX
DIVIDEND XX
TOTAL INCOME 64000 1000 3000
LESS:INTEREST PAID (1000)
NET INCOME 63000 1000 3000
LESS:PA (12570)
TAXABLE INCOME 50430 1000 3000
NSI (37740) 7540
(50430-37700) 5092
SI (1000-500) 200
D (3000-2000) 325
TAX LIABILITY 13157
CHILD BENEFIT CHARGE 2400
REVISED TAX LIABILITY 15557
LESS:PAYE (XX)
TAX PAYABLE 15557

ANI
(67000-0-0) 67000

MR HASSAN TOOK HELP FROM GOVT. £2180

INCOME TAX COMPUTATION
21/22
NSI SI D
EMPLOYMENT INCOME XX
PROFIT XX
RENT XX
INTEREST XX
DIVIDEND XX
TOTAL INCOME 53000 500 3500
LESS:INTEREST PAID (1000)
NET INCOME 52000 500 3500
LESS:PA (12570)
TAXABLE INCOME 39430 500 3500
NSI (37740) 7540
(39430-37700) 692
SI (500-500) 0
D (3500-2000) 488
TAX LIABILITY 8720
CHILD BENEFIT CHARGE (2180*60%) 1308
REVISED TAX LIABILITY 10028
LESS:PAYE (XX)
TAX PAYABLE 10028

ANI
(56000-0-0) 56000

EXCESS (56000-50000) 6000/100 60%

A PERSON HAVING TAXABLE INCOME OF £390

TRANSFER OF PERSONAL ALLOWANCE BAND EXTENDED TILL £39000 IS A BASIC RATE

MR A
INCOME TAX COMPUTATION
21/22
NSI SI D
EMPLOYMENT INCOME XX
PROFIT XX
RENT XX
INTEREST XX
DIVIDEND XX
TOTAL INCOME 8000 500 500
LESS:INTEREST PAID 0
NET INCOME 8000 500 500
LESS:PA (8000) (500) (500)
TAXABLE INCOME 0 0 0

PA GOT WASTED (12570-9000) 3570

IF TRANSFER TO SPOUSE ==> 1260

PA GOT WASTED (12570-1260) AVAILABLE (11310-9000) 2310

*TAX WILL BE COMPUTED ON PROGRESSIVE BASIS
150000-37700 = 112300
STATUS = ADDITIONAL RATE TAX PAYER

STATUS = HIGHER RATE TAX PAYER

*BAND IS USED COMPLETELY BY 15000 NOT 14500

STATUS = BASIC RATE TAX PAYER
1-37700
37701-150000 112300
>150000

1-39700
39701-152000 112300
>152000

2000(40%-20%) 400
(W)
ANI
ADJUSTED NET INCOME

TOTAL INCOME - INTEREST - GIFT AID DONATION(GROSS) -

PERSONAL PENSION SCHEME(GROSS)

93000-0-0

ANI = 93000

(W)
ANI
ADJUSTED NET INCOME

TOTAL INCOME - INTEREST - GIFT AID DONATION(GROSS) -

PERSONAL PENSION SCHEME(GROSS)

103000-0-0

ANI = 103000
EXCESS = (103000-100000) 3000/2 = 1500
PA = 12570 - 1500 11070

(W)
ANI
ADJUSTED NET INCOME
 TOTAL INCOME - INTEREST - GIFT AID DONATION(GROSS) -
PERSONAL PENSION SCHEME(GROSS)

125140-0-0

ANI = 125140
EXCESS = (125140-100000) 25140/2 = 12570
PA = 12570 - 12570 0

NAL PENSION SCHEME (GROSS)

HELP FROM GOVT. £1800

HELP FROM GOVT. £2400

HELP FROM GOVT. £2180

TAXABLE INCOME OF £39000 AND BASIC
L £39000 IS A BASIC RATE TAX PAYER

MRS A (SPOUSE)
INCOME TAX COMPUTATION
21/22
NSI SI D
EMPLOYMENT INCOME XX
PROFIT XX
RENT XX
INTEREST XX
DIVIDEND XX
TOTAL INCOME 14000 2000 3000
LESS:INTEREST PAID 0
NET INCOME 14000 2000 3000
LESS:PA (12570)
TAXABLE INCOME 1430 2000 3000
NSI (1430) 286
SI (2000) 0
D (3000-2000) 75
TAX LIABILITY 361
TAX REDUCER(1260*20%) (252) (MARRIAGE ALLOWANCE)
REVISED TAX LIABILITY 109