Introduction
In this introductory lesson, you'll learn the fundamentals of income tax computation and how to apply them as an adviser rather than just a calculator.
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In this lesson
- 0:00 Income tax computation fundamentals
- 1:35 Advanced tax advisory approach
- 2:10 After-tax cost calculations
About this lesson
The focus shifts from producing full tax computations (as in Taxation) to providing targeted tax advice—working out the implications of specific financial decisions like job offers, bonuses, or family transactions, then recommending the best option based on tax efficiency. You'll explore the income tax pro forma, discover new reliefs relevant to advanced scenarios, and understand how to calculate after-tax costs and net proceeds. This is essential groundwork for Advanced Taxation (ATX), where you'll regularly advise higher and additional rate taxpayers on their financial choices. The key skill here is identifying what the client actually needs—often just the tax impact of one specific decision—rather than wasting time on unnecessary full computations.
Duration: 2m
Transcript
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