CAT FTX Classroom - Syllabus C4. The comprehensive computation of taxable income and income t 4 / 6
a) Explain the entitlement to and the amount of the personal allowance.
b) Identify and explain the use of eligible interest.
c) Illustrate the allocation of tax bands and tax rates against taxable income
d) Explain and illustrate the difference between tax liability and tax payable for the deduction of PAYE.
e) Explain and illustrate charitable payments
i) payroll giving
ii) gift aid and the extension of basic rate and higher rate bands.
f) Prepare examples of income tax computations
i) standard layout
ii) net income
iii) use of rates and bands
iv) basic rate and higher rate band extension
v) tax liability and tax payable.
The comprehensive computation of taxable income and income t