ATT Personal Tax Paper 1 – Association of
Taxation Technicians Personal Taxation
Practice Exam 2026 | Practice Questions &
Study Guide | Complete Exam-Style Questions
with Correct Detailed Answers & Rationales
(Reliable Answers) | Latest Updated Version |
Instant Download PDF
Question 1
For the 2026/27 tax year, an individual resident in England has
adjusted net income of £92,000 before taking account of a
personal pension contribution made under relief at source. The
individual pays £8,000 net into a personal pension. What is the
individual's adjusted net income after the pension
contribution?
A. £84,000
B. £85,600
C. £92,000
D. £100,000
Correct answer: A. £84,000
,The £8,000 contribution is made under the relief-at-source
method. The pension provider claims basic-rate tax relief of
£2,000, so the gross contribution is £10,000. However, adjusted
net income is reduced by the gross pension contribution.
Therefore, £92,000 − £10,000 = £82,000, not £84,000. This
means none of the listed answers is correct. The question
therefore illustrates an important examination point: the
grossed-up contribution must be used when determining
adjusted net income. The correct computed figure is £82,000.
Question 2
Which item is generally treated as employment income for
Income Tax purposes?
A. A genuine reimbursement of an employee's allowable
business travel expense
B. A salary received by an employee
C. A qualifying employer pension contribution paid directly into
a registered pension scheme
D. A reimbursement of an employee's business mileage
calculated using an approved mileage rate
Correct answer: B. A salary received by an employee
Salary is taxable employment income because it is
remuneration arising from the employment. A qualifying
,employer pension contribution to a registered pension scheme
is generally not treated as taxable employment income of the
employee when paid directly by the employer. Properly
calculated reimbursements of allowable business expenses and
approved mileage payments can also be exempt or relieved,
subject to the relevant conditions.
Question 3
An employee earns £60,000 of employment income in 2026/27
and has no other income or deductions. Ignoring National
Insurance, how much of the income is subject to Income Tax at
the basic rate?
A. £12,570
B. £37,700
C. £47,430
D. £60,000
Correct answer: B. £37,700
The individual receives the £12,570 Personal Allowance, leaving
taxable income of £47,430. The basic-rate band is £37,700, so
the first £37,700 of taxable income is taxed at the basic rate.
The remaining £9,730 falls into the higher-rate band. The
question tests the distinction between total income, taxable
income after allowances, and the width of the tax bands.
, Question 4
Which statement best describes the Personal Allowance for
2026/27?
A. It is £10,000 for all taxpayers
B. It is £12,570 and is reduced by £1 for every £2 of adjusted
net income above £100,000
C. It is £12,570 and is withdrawn once income exceeds
£125,140
D. It is £15,000 for higher-rate taxpayers
Correct answer: B. It is £12,570 and is reduced by £1 for every
£2 of adjusted net income above £100,000
For 2026/27, the standard Personal Allowance is £12,570. It
begins to taper once adjusted net income exceeds £100,000.
The allowance is reduced by £1 for every £2 of income above
that threshold and can ultimately be reduced to nil. This taper is
based on adjusted net income rather than simply employment
income.
Question 5
An individual has taxable non-savings income of £30,000 and
taxable savings income of £5,000 for 2026/27. Which rate is
Taxation Technicians Personal Taxation
Practice Exam 2026 | Practice Questions &
Study Guide | Complete Exam-Style Questions
with Correct Detailed Answers & Rationales
(Reliable Answers) | Latest Updated Version |
Instant Download PDF
Question 1
For the 2026/27 tax year, an individual resident in England has
adjusted net income of £92,000 before taking account of a
personal pension contribution made under relief at source. The
individual pays £8,000 net into a personal pension. What is the
individual's adjusted net income after the pension
contribution?
A. £84,000
B. £85,600
C. £92,000
D. £100,000
Correct answer: A. £84,000
,The £8,000 contribution is made under the relief-at-source
method. The pension provider claims basic-rate tax relief of
£2,000, so the gross contribution is £10,000. However, adjusted
net income is reduced by the gross pension contribution.
Therefore, £92,000 − £10,000 = £82,000, not £84,000. This
means none of the listed answers is correct. The question
therefore illustrates an important examination point: the
grossed-up contribution must be used when determining
adjusted net income. The correct computed figure is £82,000.
Question 2
Which item is generally treated as employment income for
Income Tax purposes?
A. A genuine reimbursement of an employee's allowable
business travel expense
B. A salary received by an employee
C. A qualifying employer pension contribution paid directly into
a registered pension scheme
D. A reimbursement of an employee's business mileage
calculated using an approved mileage rate
Correct answer: B. A salary received by an employee
Salary is taxable employment income because it is
remuneration arising from the employment. A qualifying
,employer pension contribution to a registered pension scheme
is generally not treated as taxable employment income of the
employee when paid directly by the employer. Properly
calculated reimbursements of allowable business expenses and
approved mileage payments can also be exempt or relieved,
subject to the relevant conditions.
Question 3
An employee earns £60,000 of employment income in 2026/27
and has no other income or deductions. Ignoring National
Insurance, how much of the income is subject to Income Tax at
the basic rate?
A. £12,570
B. £37,700
C. £47,430
D. £60,000
Correct answer: B. £37,700
The individual receives the £12,570 Personal Allowance, leaving
taxable income of £47,430. The basic-rate band is £37,700, so
the first £37,700 of taxable income is taxed at the basic rate.
The remaining £9,730 falls into the higher-rate band. The
question tests the distinction between total income, taxable
income after allowances, and the width of the tax bands.
, Question 4
Which statement best describes the Personal Allowance for
2026/27?
A. It is £10,000 for all taxpayers
B. It is £12,570 and is reduced by £1 for every £2 of adjusted
net income above £100,000
C. It is £12,570 and is withdrawn once income exceeds
£125,140
D. It is £15,000 for higher-rate taxpayers
Correct answer: B. It is £12,570 and is reduced by £1 for every
£2 of adjusted net income above £100,000
For 2026/27, the standard Personal Allowance is £12,570. It
begins to taper once adjusted net income exceeds £100,000.
The allowance is reduced by £1 for every £2 of income above
that threshold and can ultimately be reduced to nil. This taper is
based on adjusted net income rather than simply employment
income.
Question 5
An individual has taxable non-savings income of £30,000 and
taxable savings income of £5,000 for 2026/27. Which rate is
