Task 2.

8
Calculate taxable amounts and tax payable for
Prof.David?

Salary Income:
Basic Salary = £3000 x 12 = £36,000
Bonus = £800
Total = £36,800

Property Income:
Property income = £2,400
Collection charges on property = (£240)
Total = £2,100

Other Income:
Income of non- professional writer = £350
Total = £350

TAXABLE INCOME:
Salary Income = £36,800
Property Income = £2,100
Other Income = £350
Total Income = £39,310
Person Allowance = (8,105)
Taxable Income = 31,205

TAX PAYABLE:
31205 @ 20% = £6,241
Tax deducted = (£880)
Tax Payable = £5,361