Taxation Essay example
Masters
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Finance & Accounting
Pages 8 (2008 words)
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Mr. Jedward and Jumbo Company tax computation. Name: Institution Tutor: Subject: Date of submission: Date of birth - 12/01/1989. Question 1 Salary computation for Mr. Jedward 12/01/1989. 890112/10 = ?89 011. Computation for Mr. Jedward’s income tax for the year 2011/2012 Salary ?…

Introduction

50,760.34 Salary - Tax - NIC Tax brackets Income 10% (starting rate for savings only) 0 - ?2,560 20% for basic rate 0 - ?35,000 40% for higher rate ?35,001 - ?150,000 50% for additional rate Over ?150,000 (HM revenue and Customs 480 (2011) The liability of income tax payable from the above computation is ?25,718.3. A deduction of personal allowance of 7,475 is made in the year 2011/2012 (Great Britain: Parliament: House of Commons: Treasury Committee, 2011,103). This figure was increased by ?1000 (Budget, 2011, pp.1).The National insurance Contributions (NICs) are calculated under the annual brackets for directors. This is payable by the employer – Jumbo Company under the PAYE system on the payroll. The NICs is ?6,027.7. This is computed under the annual rate of the Upper Earnings Limit (UEL) of 12% of ?42484 minus ?7228 = ?35256 and an addition of 2% of the amount exceeding this figure. The company is liable to pay this amount of ?6,027.7 to the tax authorities. ...
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