Calculate income tax payable or repayable for the tax year 2020/21.
During the tax year 2020/21, Keith received a gross annual basic salary of £128,400. Income tax of £27,104 was deducted from Keith ’s gross annual basic salary using the Pay As You Earn (PAYE) system. Keith’s performance in his role as a financial restructuring specialist was assessed to be ‘superb’ by Jets plc. He received a performance-related bonus of £14,000 on 30 September 2020. Income tax of £6,010 was deducted from this bonus using the PAYE system. Jets plc awarded a second performance-related bonus of £28,700 to Sam: this amount was received by Sam on 1 June 2021. His contract of employment with Jets plc states that he was contractually entitled to receive the second bonus payment on 31 March 2021. Income tax of £11,032 was deducted from this bonus using the PAYE system.
Calculate income tax payable or repayable for the tax year 2020/21.
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