AAT L4 Personal Tax Computations 2

Question 1

In 2023/24, a UK taxpayer has employment income of £55,000.
They contribute £3,000 gross to a personal pension (relief at source).
What is their adjusted net income for the purposes of determining if they are a higher rate taxpayer?

Accepted Answer

£52,000

Answer

£55,000

Answer

£58,000

Answer

£50,000

Question 2

What is the income tax personal allowance for 2023/24 for an individual with adjusted net income of £80,000?

Accepted Answer

£2,570

Answer

£12,570

Answer

£0

Answer

£6,285

Question 3

A UK employee receives a company car with a list price of £30,000 and CO2 emissions of 120g/km. The appropriate percentage for 2023/24 is 28%. The employer pays all fuel for private journeys. What is the total car and fuel benefit charge?

Accepted Answer

£8,400 + £8,988 = £17,388

Answer

£8,400 (car only)

Answer

£30,000 × 28% = £8,400

Answer

£24,600 (fuel benefit only)

Question 4

In the UK tax system, what is the difference between a 'tax relief' and a 'tax credit'?

Accepted Answer

A tax relief reduces taxable income (or income subject to tax); a tax credit directly reduces the tax liability

Answer

A tax relief increases taxable income; a tax credit reduces it

Answer

They are the same concept with different names

Answer

A tax credit is only available to businesses; a tax relief applies to individuals

Question 5

A self-employed trader has trading profits of £70,000 for 2023/24. They pay Class 4 NIC. The rates are 9% on profits between £12,570 and £50,270, and 2% on profits above £50,270. What is the total Class 4 NIC payable?

Accepted Answer

£3,798

Answer

£3,411

Answer

£4,205

Answer

£2,988

Question 6

A UK taxpayer sells a rental property for £280,000. The original purchase price was £190,000 and they spent £25,000 on an extension. They claim the annual CGT exempt amount (£6,000 for 2023/24). They are a higher rate taxpayer. What is the CGT payable?

Accepted Answer

£16,800

Answer

£18,000

Answer

£15,600

Answer

£23,400