Day 3. Income Tax Liabilities

C4. The comprehensive computation of taxable income and income t

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
    i) non-savings
    ii) savings
    iii) dividends.
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.