The ACCA Learning Community
382 online now in this group

Can anyone help me with child care vouchers f6. Thanks :)

0 Votes
Can anyone help me with child care vouchers f6. Thanks :)

When to use $ 55/28/25, how to know if it is high tax payer or basic taxpayer?
1-32010 @ 20%(basic rate)
32011-150000@40%(high rate)

150000@45%(additional rate)
Annual other income should fall between 1-32010 to be a basic tax payer but in case of dec 2010 joe jones his annual income is ( $ 114009)+(152003)= $ 148200

September 24th 2014 AN ACCA USER 310 Points

1 Reply

+1 Vote

For the vouchers it's simple, each category of taxpayer is entitled to a childcare voucher exemption( £55/week for a basic , £28/week for a higher and £25/week for an additional),when u look at the beginning of the question they say that joe jones's income has always exceeded £150000. This is a clear indication that he is an additional rate taxpayer and therefore he is entitled to a £25/week childcare voucher exemption. Look at his employment with secondly plc number 4, you can see that joe jones has been provided that voucher for 13 weeks (just count the number of weeks from 1 January 2014 to 5 April 2014). So (£70/week-£25/week) × 13 weeks= £585. That is it. However, if he had been provided with the voucher for the full year it would have been therefore multiplied by 52 weeks instead 13 weeks as there are 52 weeks in the year. How to know if it's a basic or higher or additional simple it depends on their employment income.

September 26th 2014 AN ACCA USER 8,970 Points