How does income tax relief work - Martax Accountants

	£		£
Employment Income	80,000.00
Less: Personal allowances	(12,570.00)
	67,430.00
Tax liability on income:
Taxed at basic rate	37,700.00	20%	7,540.00
Taxed at higher rate	29,730.00	40%	11,892.00
			19,432.00
Less: EIS Investment Tax Relief	10,000.00	30%	(3,000.00)
Tax liability after EIS Relief			16,432.00
Tax already paid at source under PAYE			(19,432.00)
Tax Refund due from HMRC			(3,000.00)