Non-Savings Savings Income

Dividends (DIV)
Income (NSI) (SI)

Trading Profit
Employment income (Salary) 19,500
Property Income
Interest Income 10,000
Dividends Income 1,000
Total Income 19,500 10,000 1,000

Less: Personal Allowance - 12,570

Taxable Income 6,930 10,000 1,000

Tax Thereon Amount Rate

First (NSI) 6,930 20%

Next (SI - starting Rate) - 0%
Next (SI & NBR) 1,000 0%
Next (SI) Normal Rate 9,000 20%
Next (Div) 1,000 0%
17,930 Tax Payable

Less: PAYE
Net Tax Payable

Non-Savings Savings Income

Dividends (DIV)
Income (NSI) (SI)

Trading Profit
Employment income (Salary) 37,500
Property Income
Interest Income 13,000
Dividends Income 1,000
Total Income 37,500 13,000 1,000

Less: Personal Allowance - 12,570

Taxable Income 24,930 13,000 1,000

Tax Thereon Amount Rate

First (NSI) 24,930 20%
Next (SI - starting Rate) - 0%
Next (SI & NBR) 500 0%
Next (SI) Normal Rate 12,270 20%
Next (SI) Normal Rate 230 40%
Next (Div) 1,000 0%

38,930 Tax Payable

Less: PAYE

Net Tax Payable

 Totals

-
19,500
-
10,000
1,000
30,500

- 12,570
17,930

Liability

1,386
-
-
1,800
-
3,186

- 1,400
1,786

Non-
Savings
Savings
Totals Income
Income
(NSI) (SI)

- Trading Profit
37,500 Employment income (Salary) 50,070
- Property Income
13,000 Interest Income 13,000
1,000 Dividends Income
51,500 Total Income 50,070 13,000

- 12,570 Less: Personal Allowance - 12,570

38,930 Taxable Income 37,500 13,000

Liability Tax Thereon Amount Rate

 4,986 First (NSI) 37,500 20%
- Next (SI - starting Rate) - 0%
- Next (SI & NRB) 500 0%
2,454 Next (SI) Normal Rate 20%
92 Next (SI) Normal Rate 12,500 40%
- Next (Div) 1,000 0%

7,532 51,500

- 5,000

2,532
Dividends Totals
(DIV)

-
50,070
-
13,000
1,000 1,000
1,000 64,070

- 12,570
1,000 51,500

Liability
 7,500
-
-
- Ok this way eventhough totalling to 38,000 instead of 37,700, since we did not apply a rate for the fig
5,000
-
Tax
Payable 12,500

Less: PAYE - 5,000

Net Tax
Payable 7,500
not apply a rate for the figure of 300 beyond this amount
Smith Billy
Non Saving Savings Dividends
Total
Income (NSI) Income (SI) Income (Div)
Trading Income 0
Salary Income 62,500 62500
Bank Interest Income 0
Dividends Income 0
Total Income 62500 0 0 62500

Less: Personal Allowance - 12,570 - 12,570

Taxable Income 49,930 0 0 49,930

Amount Tax Liability

Tax Thereon
First (NSI) 37,700 20% 7540
Next (NSI) 12,230 40% 4892
Next (SI - Starting Rate) 0
Next (SI - Nil Rate Band) 0
Next (SI - Normal Rate) 0
Next (Div)
49930 12432
Less: PAYE 12000
432

Billy 2 Molly
Non Saving Savings Dividends
Total
Income (NSI) Income (SI) Income (Div)
Trading Income 27,500 27500
Salary Income 0
Bank Interest Income 25,000 25000
Dividends Income 0
Total Income 27500 25000 0 52500

Less: Personal Allowance - 12,570 - 12,570

Taxable Income 14,930 25000 0 39,930

Amount Tax Liability

Tax Thereon
First (NSI) 14,930 20% 2986
Next (SI - Starting Rate) 0 0% 0
Next (SI - Nil Rate Band) 500 0% 0
Next (SI - Normal Rate) 22,270 20% 4454
Next (Div) 2,230 40% 892
39930 8332
Less: PAYE
8332

Polly Daisy
 Non Saving Savings Dividends
Total
Income (NSI) Income (SI) Income (Div)
Trading Income 13,500 13500
Salary Income 0
Bank Interest Income 18,000 18000
Dividends Income 0
Total Income 13500 18000 0 31500

Less: Personal Allowance - 12,570 - 12,570

Taxable Income 930 18000 0 18,930

Amount Tax Liability

Tax Thereon
First (NSI) 930 20% 186
Next (SI - Starting Rate) 4,070 0% 0
Next (SI - Nil Rate Band) 1000 0% 0
Next (SI - Normal Rate) 12,930 20% 2586
Next (Div)
18930 2772
Less: PAYE
2772

Daisy II
Non Saving Savings Dividends
Total
Income (NSI) Income (SI) Income (Div)
Trading Income 0
Salary Income 37,500 37500
Bank Interest Income 13,000 13000
Dividends Income 1,000 1000
Total Income 37500 13000 1000 51500

Less: Personal Allowance - 12,570 - 12,570

Taxable Income 24,930 13000 1000 38,930

Amount Tax Liability

Tax Thereon
First (NSI) 24,930 20% 4986
Next (SI - Starting Rate) 0 0% 0
Next (SI - Nil Rate Band) 500 0% 0
Next (SI - Normal Rate) 12,270 20% 2454
Next (SI - Normal Rate) 230 40% 92
Next (Div) 1000 0% 0
38929.6 7531.84
Less: PAYE 5000
2532
 Non Saving Savings Dividends
Total
Income (NSI) Income (SI) Income (Div)
Trading Income 27,500 27500
Salary Income 0
Bank Interest Income 10,000 10000
Dividends Income 0
Total Income 27500 10000 0 37500

Less: Personal Allowance - 12,570 - 12,570

Taxable Income 14,930 10000 0 24,930

Amount Tax Liability

Tax Thereon
First (NSI) 14,930 20% 2986

Next (SI - Starting Rate) 0 0% 0

Next (SI - Nil Rate Band) 1000 0% 0
Next (SI - Normal Rate) 9000 20% 1800
Next (Div)
24930 4786
Less: PAYE
4786

Non Saving Savings Dividends

Total
Income (NSI) Income (SI) Income (Div)
Trading Income 0
Salary Income 0
Bank Interest Income 22,500 22500
Dividends Income 0
Total Income 0 22500 0 22500

Less: Personal Allowance - 12,570 - 12,570

Taxable Income - 9930 0 9,930

Amount Tax Liability

Tax Thereon
First (NSI) 0 0% 0
Next (SI - Starting Rate) 5000 0% 0
Next (SI - Nil Rate Band) 1000 0% 0
Next (SI - Normal Rate) 3930 20% 786
Next (Div)
9930 786
Less: PAYE
786
 Non Saving Savings Dividends
Total
Income (NSI) Income (SI) Income (Div)
Trading Income 0
Salary Income 19,500 19500
Bank Interest Income 10,000 10000
Dividends Income 1,000 1000
Total Income 19500 10000 1000 30500

Less: Personal Allowance - 12,570 - 12,570

Taxable Income 6,930 10000 1000 17,930

Amount Tax Liability

Tax Thereon
First (NSI) 6,930 20% 1386
Next (SI - Starting Rate) 0 0% 0
Next (SI - Nil Rate Band) 1000 0% 0
Next (SI - Normal Rate) 9000 20% 1800
Next (Div) 1000 0% 0
17930 3186
Less: PAYE 1400
1786
Homework 1
Non Saving Savings Dividends
Total
Income (NSI) Income (SI) Income (Div)
Trading Income 16,200 16,200
Salary Income 0
Bank Interest Income 54,000 54,000
Dividends Income 7,600 7,600
Total Income 16,200 54,000 7,600 77,800

Less: Personal Allowance - 12,570 - 12,570

Taxable Income 3,630 54,000 7,600 65,230

Amount Tax Liability

Tax Thereon
First (NSI) 3,630 20% 726
Next (SI - Starting Rate) 1,370 0% 0
Next (SI - Nil Rate Band) 500 0% -
Next (SI - Normal Rate) 32,200 20% 6,440
Next (SI - Normal Rate) 19,930 40% 7,972
Next (Div) 2,000 0% 0
Next (Div - Normal Rate) 5,600 7.50% 420
65,230 15,558
Less: PAYE 0
15,558

Homework 3

Non Saving Savings Dividends

Total
Income (NSI) Income (SI) Income (Div)
Trading Income 0
Salary Income 0
Bank Interest Income 15,000 15,000
Dividends Income 45,000 45,000
Total Income 0 15,000 45,000 60,000

Less: Personal Allowance - 12,570 - 12,570

Taxable Income - 2,430 45,000 47,430

Amount Tax Liability

Tax Thereon
First (NSI) - 0% 0
Next (SI - Starting Rate) 2,430 0% 0
Next (Div) 2,000 0% 0
Next (Div) - Normal Rate 33,270 7.50% 2,495
Next (Div) - Normal Rate 9,730 32.50% 3,162
47,430 5,658
Less: PAYE 0
5,658
Homework 2
Non Saving Savings Dividends
Total
Income (NSI) Income (SI) Income (Div)
Trading Income -
Salary Income 0
Bank Interest Income -
Dividends Income 40,000 40,000
Total Income - - 40,000 40,000

Less: Personal Allowance - 12,570 - 12,570

Taxable Income - - 27,430 27,430

Amount Tax Liability

Tax Thereon
Next (Div) 2,000 0% 0
Next (Div - Normal Rate) 25,430 7.50% 1,907
- -
27,430 1,907
Less: PAYE 0
1,907
Homework 1
Non Saving Savings Dividends
Total
Income (NSI) Income (SI) Income (Div)

Trading Income -
Salary Income 108,000 108000
Bank Interest Income -
Dividends Income -
Total Income 108,000 - - 108,000

Less: Personal Allowance - 8,570 - 8,570

Taxable Income 99,430 - - 99,430

Amount Tax Liability

Tax Thereon
First (NSI) 37,700 20% 7,540
Next (NSI) 61,730 40% 24692
99,430 32,232
Less: PAYE 32000
232

James

Non Saving Savings Dividends

Total
OKK Income (NSI) Income (SI) Income (Div)
Trading Income 102,000 102,000
Salary Income 0
Bank Interest Income 4,000 4,000
Dividends Income -
Total Income 102,000 4,000 - 106,000

Less: Personal Allowance - 9,570 - 9,570

Taxable Income 92,430 4,000 - 96,430

Amount Tax Liability

Tax Thereon
First (NSI) 37,700 20% 7,540
Next (NSI) 54,730 40% 21,892
Next (SI)-Starting Rate 500 0% -
Next (SI) 3,500 40% 1,400
96,430 30,832
Less: PAYE
30,832
 Non Saving Dividends
OKK Savings Income (SI)
Income (NSI) Income (Div)

Trading Income 130,000

Salary Income
Bank Interest Income 40,000
Dividends Income 36,000
Total Income 130,000 40,000 36,000

Less: Personal Allowance -

Taxable Income 130,000 40,000 36,000

Amount Tax Liability

Tax Thereon
First (NSI) 37,700 20% 7,540
Next (NSI) 92,300 40% 36,920
Next (SI)-SR - 0% -
Next (SI) 20,000 40% 8,000
Next (SI) 20,000 45% 9,000
Next (DIV) 2,000 0% -
Next (DIV) 34,000 38.1% 12,954
206,000 74,414
Less: PAYE
74,414
Total

130,000
0
40,000
36,000
206,000

-
206,000
 Non Saving Savings Dividends
Total
Income (NSI) Income (SI) Income (Div)
-
13,500 13,500
-
-
-
-
Total Income 13,500 - - 13,500

Less: Personal Allowance -

Taxable Income 13,500 - - 13,500

Tax Thereon
Amount Tax Liability

-
-
- -
Less: PAYE
-

Non Saving Savings Dividends

Total
OKK Income (NSI) Income (SI) Income (Div)
Trading Income 102,000 102,000
Salary Income 0
Bank Interest Income 4,000 4,000
Dividends Income -
Total Income 102,000 4,000 - 106,000

Less: Personal Allowance - 9,570 - 9,570

Taxable Income 92,430 4,000 - 96,430

Amount Tax Liability

Tax Thereon
First (NSI) 37,700 20% 7,540
Next (NSI) 54,730 40% 21,892
Next (SI)-Starting Rate 500 0% -
Next (SI) 3,500 40% 1,400
96,430 30,832
Less: PAYE
30,832
 NSI (Non-savings SI (Savings DI (Dividends
Income) Income) Income)
Proforma

Total Income - - -

Less: Personal Allowance 62,570

Taxable Income - 62,570 - -

Tax Thereon Amount Rate Liability

-
-
-
-
-
-
-
-
- -

Less PAYE

Next Tax Payable -

 Total

-
-
-
-

62,570

- 62,570
 NSI SI DI Total

Trading Profit 170000 170000

0
Total Income 170000 0 0 170000

Less: Personal Allowance 0 0

Taxable income 170000 0 0 170000

Tax Thereon Amount Rate Liability

First NSI - Normal 37700 20% 7540

Next NSI - Gift Aid Scheme 10000 20% 2000
Next NSI - Normal 102300 40% 40920
Next NSI - Gift Aid Scheme 10000 40% 4000
Next NSI - Normal 10000 45% 4500
170000 58960

Non Saving Savings Income Dividends

Total
Income (NSI) (SI) Income (Div)
Trading Income 130,000 130,000
Salary Income 0
Bank Interest Income 40,000 40,000
Dividends Income 36,000 36,000
Total Income 130,000 40,000 36,000 206,000

Less: Personal Allowance 0 0

Total Taxable Income 130,000 40,000 36,000 206,000

Tax Thereon Amount Rate Liability

First - NSI 37,700 20% 7,540
Next - NSI 92,300 40% 36,920
Next - SI (Starting rate) - 0% 0
Next - SI (Nil band rate) - 0% 0
Next - SI (Normal rate) 20,000 40% 8,000
Next - SI (Normal rate) 20,000 45% 9,000
Next - DI (starting rate) 2,000 0% 0
Next - DI (Normal rate) 34,000 38.10% 12,954
206,000 74,414

Non Saving Savings Income Dividends

Total
Income (NSI) (SI) Income (Div)
Trading Income -
Salary Income 170,000 170000
Bank Interest Income -
Dividends Income -
Total Income 170,000 - - 170,000

Less: Personal Allowance 0 0

Total Taxable Income 170,000 - - 170,000

Tax Thereon Amount Rate Liability

First - NSI 37,700 20% 7,540

10,000 20% 2,000
Next - NSI 102,300 40% 40,920
10,000 40% 4,000
10,000 45% 4,500

170,000 58,960
Gift Aid Scheme 10,000
 Non Saving Savings Dividends
CASE 1 Total
Income (NSI) Income (SI) Income (Div)

-
Trading Income 100,000 100,000
-
Total Income 100,000 - 100,000

Less: Personal Allowance 12570

Taxable Income 87,430 - - 100,000
Assume all the above is NSI

CASE 1 Tax Thereon

Amount Rate Liability

First NSI 37700 20% 7,540

Next NSI 49,730 40% 19,892
-
-
-
87,430 27,432
Less: PAYE
27,432 OK

CASE 2 Tax Thereon

Amount Rate Liability
First NSI 37700 20% 7,540
Next NSI 64,730 40% 25,892
-
-
-
102,430 33,432
Less: PAYE
33,432 OK

Difference between tax liability for case 1 & case 2 = 6,000

 Non Saving Savings Income
CASE 2
Income (NSI) (SI)

Total Income 110,000

Less: Personal Allowance 12570 7570

Taxable Income - 12,570 102,430
Assume all the above is NSI

Example 13: NSI (Non- SI (Savings

Elliot savings Income) Income)
Proforma

Trading Profit 53,000

Total Income 53,000 -

Less: Personal Allowance 12,570

Taxable Income 40,430 -

Tax Thereon Amount Rate

First 37,700 20%

Next (Gross Gift Aid) 2,000 20%
Next (Balance) 730 40%

40,430

Less PAYE
Next Tax
Payable
Example 14: NSI (Non- SI (Savings
Thomas savings Income) Income)
Proforma

Trading Profit 160,000

Total Income 160,000 -

Less: Personal Allowance 0.00

Taxable Income 160,000 -

Tax Thereon Amount Rate

First (NSI) 37,700 20%

Next (Gross Gift Aid) 8,000 20%
Next 104,300 40%
Next 8,000 40%
Next 2,000 45%

160,000

Less PAYE
Next Tax
Payable

Example 15: NSI (Non- SI (Savings

kerry savings Income) Income)
Proforma

Trading Profit 98,000

Bank Interest 4,000
Dividend Income

Total Income 98,000 4,000

Less : Interest on loan(capital into Partnership) 3,000

Net Income 95,000 4,000

Less: Personal Allowance 12,570

Taxable Income 82,430 4,000

Tax Thereon Amount Rate

First (NSI) 37,700 20%

Next (Gross Gift Aid) 6,000 20%
Next (NSI) 38,730 40%
Next (SI - Starting rate) 0 0%
Next (SI -Nil Band rate) 500 0%
Next (SI - Normal rate) 3,500 40%
Next (DI - Nil Band Rate) 2,000 0%
Next (DI - Normal Rate) 4,000 32.50%
Income Tax Liability 92,430

Less PAYE
Next Tax
Payable
Dividends
Income Total
(Div)
-
-
-
- -

- -

DI
(Dividends Total
Income)

-
53,000
-
-

- 53,000

12,570

- 40,430

Liability

7,540
400 Gift aid 1,600 / Gross = 2,000
292
-
-
-
-
-
8,232

8,232
 DI
(Dividends Total
Income)

-
160,000
-
-

- 160,000

- 160,000

Liability

7,540
1,600 Gift aid 6,40000 / Gross = 8,000
41,720
3,200
900
-
-
-
54,960

54,960

DI
(Dividends Total
Income)

98,000
4,000
6,000 6,000

6,000 108,000

3,000
 ANI = NI less GPPC less GGAD
6,000 105,000

12,570 PA = 12,570 less 50% (108,000 - 100,000)

6,000 92,430 ANI Taxable income (b4 allowances) 105,000

Less GAD 6,000
Liability ANI 99,000
But the ANI is less than 100k, so the taxpayer receives the full PA
7,540
1,200 Gift aid 4,800 / Gross = (4,800/80%) = 6,000
15,492
-
-
1,400
-
1,300
26,932 26932

26,932
es the full PA
 NSI (Non-
SI (Savings DI (Dividends
savings
Income) Income)
Example Proforma Income)

Trading Profit 135,000 135,000

Savings Income 5,000 5,000
Dividend Income -

Total Income 135,000 5,000 140,000

Net Income 135,000 5,000 140,000

Less: Personal Allowance 7,570 7,570

Taxable Income 127,430 5,000 132,430

Tax Thereon Amount Rate Liability

First (NSI) 37,700 20% 7,540

Next (NSI - Gross Gift Aid) 30,000 20% 6,000
Next (NSI) 59,730 40% 23,892
Next (SI - Starting rate) 0 0% -
Next (SI -Nil Band rate) 500 0% -
Next (SI - Normal rate) 4,500 40% 1,800
Income Tax Liability 132,430 39,232

Less PAYE
Next Tax
Payable 39,232

NSI (Non-
SI (Savings DI (Dividends
savings
Income) Income)
Example Proforma Income)
Trading Income 3,500 3,500
 Savings Income 110,000 110,000
Dividend Income -

Total Income 3,500 110,000 113,500

Net Income 3,500 110,000 113,500

Less: Personal Allowance 3,500 9,070 12,570

Taxable Income - 100,930 100,930

Tax Thereon Amount Rate Liability

First (SI - Starting rate) 5000 0% -

Next (SI -Nil Rate Band) 500 0% -
Next (SI - Normal rate) 32,200 20% 6,440
Next (SI - GAD) 20,000 20% 4,000
Next (SI - Normal rate) 43,230 40% 17,292

Income Tax Liability 100,930 27,732

Less PAYE
Next Tax
Payable 27,732

NSI (Non-
SI (Savings DI (Dividends
savings Total
Income) Income)
Example Proforma Income)
Trading Income 4,000 4,000
Savings Income 110,000 110,000
Dividend Income 13,500 13,500

Total Income 4,000 110,000 13,500 127,500

Net Income 4,000 110,000 13,500 127,500

Less: Personal Allowance 4,000 4,820 8,820

Taxable Income - 105,180 13,500 118,680

 Tax Thereon Amount Rate Liability

First (SI - Starting rate) 5000 0% -

Next (SI -Nil Rate Band) 500 0% -
Next (SI - Normal rate) 32,200 20% 6,440
Next (SI - GAD) 20,000 20% 4,000
Next (SI - Normal rate) 47,480 40% 18,992
Next DIV 2,000 0% -
Next DIV (Normal rate) 11,500 32.5% 3,738
Income Tax Liability 118,680 33,170

Less PAYE
Next Tax
Payable 33,170

Couples Property
Jane John
Trading Income 10,000 150,000
OKK

Gift Aid Donation (24000/80%) = 30000

ANI 110,000

ANI Taxable income (b4 allowances) 140,000

Less GAD 30,000
ANI 110,000

PA Full amount 12,570

Less: 5,000
PA 7,570

OKK
 Gift Aid Donations 16,000/80% = 20,000

ANI 93,500
<100k, Hence Full PA of 12,570

OKK

Gift Aid Donations 16,000/80% = 20,000

ANI 107,500
PA 8,820
if ANI <100,000 then the taxpayer receives the full PA 12,570

50%(110,000-100,000)