Mr. John is employed in a private Limited Company and he has provided you with the following information regarding his income and outgoings for the tax year 2019-2020.

Income
Employment income	110,000
Building society interest	10,000
Dividend received from UK company	2,000
Payment of Charity to approved charitable organization under the Gift Aid Donation scheme (GAD)	8000 (NET)

ANSWER QUESTION NO 40 TO 43

Question 40

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His tax liability on other income for the tax year 2019-2020 is

a.

32,500

b.

31,900

c.

31,500

d.

29,500

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Question 41

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His tax liability on Savings income for the tax year 2019-2020 is

a.

3,800

b.

4,000

c.

2,000

d.

0

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Question 42

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His eligible personal allowance to be claimed from his Net Income is

a.

0

b.

6,000

c.

5,500

d.

12500

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Question 43

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Which of the following tax treatment is True in respect of his payment of charity under GAD?

a.

Basic rate band will be increased by the gross amount of Gift aid payment

b.

Higher rate band will be increased by the gross amount of Gift aid payment

c.

It will be added along with the Adjusted Net Income

d.

It will not qualify for tax relief under GAD