Tax Calculation on Disregarded Income
Symptoms:
From the tax year 2020-21 onwards, disregarded income will not be excluded for the purpose of the tax calculation in SA302.
Cause:
HMRC have made certain changes to include the disregarded income in the tax calculation from tax year 2020-21 onwards. Hence unlike earlier years, disregarded income will be considered for the purpose of calculation of the Total Tax Due.
Solution:
The software calculates tax and allocates various allowances in line with Government (HMRC) tax calculation specifications and computational rules.
Also note, the SA302 Tax calculation summary is for your reference only and does not get sent to HMRC. HMRC will perform their own calculations based on your entries once they have received your tax returns data.
You can also refer to information provided on this HMRC web page on 'Disregarded Income' and Tax:
