tax tables:

Rates and allowances

INCOME TAX (2018/19)

%

Basic rate 1 34,500 20%

Higher rate 34,500 150,000 40%

Additional higher rate 150,001 onwards 45%

A starting rate of 10% applies to savings income where it falls within the first 5,000 of taxable income.

Personal allowances (2018/19)

Personal allowance 11,850

Car fuel benefit (2018/19)

The base figure for calculating the car fuel benefit is 23,400.

Approved mileage rates (2018/19)

Car and vans: 0 10,000 miles 45p per mile

10,000+ miles 25p per mile

Motor cycles 24p per mile

Bicycles 20p per mile

CAPITAL GAINS TAX (CGT) (2018/19)

Standard rate of CGT 10%*

Higher rate of CGT 20%*

Entrepreneurs relief rate 10%

Annual exemption 11,700

Entrepreneurs relief 10,000,000

*An 8% surcharge applies in respect of residential properties.

NATIONAL INSURANCE (NI) (2018/19)

CLASS 1 (primary)

Earnings up to 162 a week Nil

Earnings between 162 and 892 12%

Earnings over 892 a week 2%

CLASS 1 (secondary)

Earnings up to 162 a week Nil

Earnings over 162 a week 13.8%

CLASS 2

Weekly Contribution 2.95

Small earnings exception - 6,205

CLASS 3

Weekly contribution - 14.65

CLASS 4

Lower profits limit 8,424

Upper profits limit 46,350

Rate on profits between upper and lower limit 9%

Rate on profits beyond upper limit - 2%

Olwen had the following income for the tax year 2017/18: i) Gross Salary 58,000 (her employer deducted PAYE of 9,000) Her employer also provided her with a company car for her private use throughout the year. It was a petrol car with a list price of 32,500 and CO2 emissions of 130gkm. Her employer also provided her with petr tr he on us i) Bank interest of 1,250 ii) Dividends from a UK company of 650. During the year Olwen made a charitable donation under the Gift Aid scheme of 180. Required: a) Prepare the income tax computation for Olwen for 2017/18, showing the tax liability and the tax due to be paid. 15 marks b) Explain how your calculations would differ if, during the year, Olwen had income in excess of 100,000. Olwen had the following income for the tax year 2017/18: i) Gross Salary 58,000 (her employer deducted PAYE of 9,000) Her employer also provided her with a company car for her private use throughout the year. It was a petrol car with a list price of 32,500 and CO2 emissions of 130gkm. Her employer also provided her with petr tr he on us i) Bank interest of 1,250 ii) Dividends from a UK company of 650. During the year Olwen made a charitable donation under the Gift Aid scheme of 180. Required: a) Prepare the income tax computation for Olwen for 2017/18, showing the tax liability and the tax due to be paid. 15 marks b) Explain how your calculations would differ if, during the year, Olwen had income in excess of 100,000