Mr. Thomas is a certified accountant working for an audit firm in London. He is married to Ms. Lucy and has 3 children. Lucy is a housewife and does not have any other income. Mr. Thomas’s income and other relevant data for the fiscal year 2020-21 are given below.  

Salary and other benefits from employment are ₤ 47,200.  

Trade income from his small business was ₤ 2,000  

Interest income from building society was ₤ 3,400, bank deposits ₤ 1,500, and national saving certificates ₤ 1,600.  

Income from game-winning ₤ 400  

Dividend income of ₤ 6,700  

Contribution to gift aid ₤ 7,600 

a. Calculate Mr. Thomas’s taxable income and tax liability. 

b. Calculate child benefit tax assuming that Thomas and Lucy received ₤ 2,725 child benefit allowance during the year.

Answer rating: 100% (QA)

a The taxable income is 4720020003400150016004006700760057400 The tax liability is 5740... View the full answer