1. Personal tax computation/national insurance

1. Prakash is a 62-year-old wealth manager. His taxable self-employed profits were 132,000 in the year ended 5 April 2021. His other income for the year consisted of: dividends received 6,000, gross interest received from a bank 2,000. He made net payments of 20,000 to his registered pension provider.

Calculate the income tax and national insurance payable by Prakash for the year ended 5 April 2021.

2. Najma, Prakashs wife, aged 68, received state pension of 9,500, private pension of 2,400 and gross interest from her bank of 6,000 during the year ended 5 April 2021. There was no PAYE income tax deduction from her pension income.

1. Calculate any income tax payable by Najma for the year ended 5 April 2021.

How much tax could the couple save if Prakashs shares (which yielded dividend income of 6,000) has been transferred into joint names so that Prakash and Najma received 3,000 each?