AAT L4 Personal Tax (UK Income Tax)

Question 1

For the tax year 2024/25, the personal allowance is:

Accepted Answer

£12,570

Answer

£11,500

Answer

£12,000

Answer

£13,000

Question 2

UK income tax rates for non-savings income in 2024/25 are: basic rate applies up to taxable income of:

Accepted Answer

£37,700

Answer

£25,000

Answer

£50,000

Answer

£100,000

Question 3

Employment income for income tax purposes includes:

Accepted Answer

Salary, bonuses, benefits in kind (e.g., company car, private medical insurance), and expense allowances not wholly for business use

Answer

Only salary and wages

Answer

Employer pension contributions only

Answer

Only cash payments from the employer

Question 4

The benefit in kind for a company car is calculated based on:

Accepted Answer

The list price of the car multiplied by the appropriate percentage based on CO2 emissions

Answer

The market value of the car at the employee's tax year end

Answer

The cost of personal use of the car per mile driven

Answer

A fixed benefit of £3,000 per year for all company cars

Question 5

Which of the following types of income is taxed first in the UK tax computation?

Accepted Answer

Non-savings income (employment, trade, rental)

Answer

Dividend income

Answer

Savings income

Answer

Capital gains

Question 6

UK income tax is charged on the total income of an individual after deducting:

Accepted Answer

Personal allowance and reliefs such as gift aid and pension contributions (adjusted net income concept)

Answer

Personal allowance only

Answer

Only mortgage interest relief

Answer

Business expenses only