ACCA Advanced Taxation (ATX) Practice Exam

Disable ads (and more) with a membership for a one time $4.99 payment

Prepare for the ACCA Advanced Taxation Exam. Use interactive flashcards and multiple-choice questions, complete with hints and comprehensive explanations. Ensure your success on exam day!

Practice this question and more.

What is the maximum monthly contribution allowed in a Save as You Earn (SAYE) plan?

£3,000
£500
£1,000
£2,000

The correct answer is: £500

The maximum monthly contribution allowed in a Save as You Earn (SAYE) plan is £500. This limit is established to provide a tax-advantaged savings scheme that encourages employees to save towards the purchase of shares in their employer’s company. By allowing a contribution limit of £500 per month, the SAYE plan strikes a balance between encouraging savings while providing a manageable cap that aligns with the objectives of the scheme. This limit is crucial in maintaining the tax advantages associated with the plan, as contributions above this threshold may not benefit from the same favorable tax treatment. Understanding this limit is important for both employees and employers when considering participation in the SAYE scheme.