DipFA · 3 timed mocks
AFAT1 — Taxation — Unit 1
The first half of DipFA Module 2 (AFAT): UK tax system, income tax, NICs, residence, and the main personal allowances and bands. 20 standalone questions plus two case studies, 30 marks in 45 minutes, 21/30 to pass.
- Questions
- 30
- Minutes
- 45
- Pass (70%)
- 21/30
What AFAT1 covers
- •Income tax bands, personal allowance and the £100,000 taper (2026/27)
- •Savings and dividend allowances; dividend rates 10.75% / 35.75% / 39.35%
- •National Insurance Classes 1 and 4 for employed and self-employed
- •Statutory Residence Test and split-year treatment
- •Marriage allowance, blind person's allowance and high-income child benefit charge
- •PAYE, self-assessment and payment on account
3 free AFAT1 practice questions
Straight from Mock Paper 1, in the real exam style — no sign-up, no paywall.
Q1.For 2026/27, what is the standard personal allowance for an individual under 65 with income below £100,000?
- A£11,310
- B£12,570
- C£12,750
- D£13,570
Reveal the answer
B is correct. The personal allowance for 2026/27 remains £12,570. £11,310 was an older figure; £12,750 and £13,570 are distractors. Below £100,000 adjusted net income the full allowance is available before tapering begins.
Q2.In England, Wales and Northern Ireland for 2026/27, the basic rate of income tax applies to taxable non-savings income above the personal allowance up to which upper limit?
- A£37,700 of taxable income
- B£50,270 of total income
- C£50,270 of taxable income
- D£125,140 of taxable income
Reveal the answer
C is correct. The basic rate band ends at £50,270 of taxable income (after allowances). £37,700 is the width of the band, not the ceiling. £50,270 of total income ignores that allowances are deducted first. £125,140 is where the additional rate begins.
Q3.At what level of taxable income does the additional rate of 45% first apply in 2026/27 (England/Wales/NI)?
- AAbove £100,000
- BAbove £125,140
- CAbove £150,000
- DAbove £150,270
Reveal the answer
B is correct. The additional rate threshold is £125,140 of taxable income. £100,000 triggers personal allowance taper, not the 45% rate. £150,000 was the old threshold; £150,270 confuses taxable income with an incorrect figure.
How to pass AFAT1
- ✓Learn 2026/27 figures cold: PA £12,570, basic-rate band to £50,270, additional rate £125,140.
- ✓Dividend rates changed in April 2026 — older 8.75%/33.75% material is wrong.
- ✓Case studies reward applying the taper and the right rate to the right slice of income.
AFAT1 exam — common questions
What does the AFAT1 exam cover?
AFAT1 covers income tax bands, personal allowance and the £100,000 taper (2026/27), savings and dividend allowances; dividend rates 10.75% / 35.75% / 39.35%, national insurance classes 1 and 4 for employed and self-employed, statutory residence test and split-year treatment and more. In full: Income tax bands, personal allowance and the £100,000 taper (2026/27); Savings and dividend allowances; dividend rates 10.75% / 35.75% / 39.35%; National Insurance Classes 1 and 4 for employed and self-employed; Statutory Residence Test and split-year treatment; Marriage allowance, blind person's allowance and high-income child benefit charge; PAYE, self-assessment and payment on account.
How long is the AFAT1 exam?
45 minutes. Our AFAT1 mock papers run to the same clock, so you practise at exam pace rather than at your own.
What is the pass mark for AFAT1?
70% — 21 out of 30 marks. You have to clear 70% in each unit independently; there is no compensation between units.
How many questions are in the AFAT1 exam?
30 questions — 20 standalone questions + 2 case studies × 5 linked questions, worth 30 marks in total.
Is AFAT1 part of DipFA or CeMAP?
AFAT1 is a DipFA Applied Financial Advice unit. It is not part of CeMAP.