Let’s do the questions from Tutorial 12

Annual Taxable Income Bracket (£)

Tax Rate

Total Tax paid (£) at the top of this taxable income bracket

0 – 12,000

10%

1,200

12,000 – 31,500

15%

4,125

31,500 – 54,950

20%

8,815

54,950 – 81,450

29%

16,500

81,450 – 184,000

37%

55,469

184,000 and over

45%

 

The table shows the total tax paid (£) on annual taxable income.

For example, a person with an annual taxable income of £45,000 will pay £4,125 plus 20% of (£45,000 – £31,500).

1. Ruoxuan has an annual taxable income of £23,330. The income tax, to the nearest £, he has to pay is:
  • 6
    1

    Explanation

    The correct answer is C.

    £23,300 fits into the second tax bracket… £12,000 gets taxed at 10%, yielding £1,200 (as shown in the RH column)

    The remaining (£23,330 – £12,000) = £11,330 gets taxed at 15%, yielding £1,699.50 – adding this to £1,200 makes £2,900 (4sf)

    Post Comment
    bob Medicmind Tutor

    Mon, 30 Aug 2021 09:02:41

    where did 23300 come from

    hamanok Medicmind Tutor

    Wed, 01 Sep 2021 23:40:33

    WHAAAAAAAA?

    Beverly Medicmind Tutor

    Wed, 08 Sep 2021 05:25:53

    That's the annual taxable income

    Annual Taxable Income Bracket (£)

    Tax Rate

    Total Tax paid (£) at the top of this taxable income bracket

    0 – 12,000

    10%

    1,200

    12,000 – 31,500

    15%

    4,125

    31,500 – 54,950

    20%

    8,815

    54,950 – 81,450

    29%

    16,500

    81,450 – 184,000

    37%

    55,469

    184,000 and over

    45%

     

    The table shows the total tax paid (£) on annual taxable income.

    For example, a person with an annual taxable income of £45,000 will pay £4,125 plus 20% of (£45,000 – £31,500).

    2. Olenka has an annual taxable income of £114,050. The income tax she has to pay is:
  • 4
    5

    Explanation

    The correct answer is B.

    £114,050 fits into the fifth tax bracket:

    The RH column shows that the first £81,450 yields £16,500 tax;

    Then, the remaining (£114,050 – £81,450) = £32,600 gets taxed at 37%, yielding £12,062 and thus a total of £28,562

    Post Comment
    Maya Medicmind Tutor

    Sun, 18 Jul 2021 10:09:27

    Why isn't 12062+8815=20877 ??

    Maya Medicmind Tutor

    Sun, 18 Jul 2021 10:11:05

    even 12062+8815+4125+1200=26202

    Annual Taxable Income Bracket (£)

    Tax Rate

    Total Tax paid (£) at the top of this taxable income bracket

    0 – 12,000

    10%

    1,200

    12,000 – 31,500

    15%

    4,125

    31,500 – 54,950

    20%

    8,815

    54,950 – 81,450

    29%

    16,500

    81,450 – 184,000

    37%

    55,469

    184,000 and over

    45%

     

    The table shows the total tax paid (£) on annual taxable income.

    For example, a person with an annual taxable income of £45,000 will pay £4,125 plus 20% of (£45,000 – £31,500).

    3. Max pays £10,000 tax per year. What is his taxable income, to the nearest £10, before tax is deducted?
  • 6
    3

    Explanation

    The correct answer is D.

    If Max pays £10,000 tax per year, his income must lie in the fourth tax bracket (i.e. he earns £54,950 to £81,450).

    £10,000 – £8,815 = £1,185, which must have come from £1,185/0.29 = £4,086.21 (2dp). Adding this to £54,950 gives £59,040 (5sf)

    Post Comment
    Alex Medicmind Tutor

    Fri, 13 Aug 2021 10:29:50

    if its 10000 it falls into the third bracket though??

    Alex Medicmind Tutor

    Fri, 13 Aug 2021 10:30:41

    ignore that my bad

    anonymous Medicmind Tutor

    Mon, 16 Aug 2021 13:49:17

    how do you know which bracket it fall into ?

    saira Medicmind Tutor

    Wed, 25 Aug 2021 17:55:33

    where is the o.29 from

    leena Medicmind Tutor

    Mon, 30 Aug 2021 13:23:37

    the 0.29 comes from dividing 29 by 100

    Annual Taxable Income Bracket (£)

    Tax Rate

    Total Tax paid (£) at the top of this taxable income bracket

    0 – 12,000

    10%

    1,200

    12,000 – 31,500

    15%

    4,125

    31,500 – 54,950

    20%

    8,815

    54,950 – 81,450

    29%

    16,500

    81,450 – 184,000

    37%

    55,469

    184,000 and over

    45%

     

    The table shows the total tax paid (£) on annual taxable income.

    For example, a person with an annual taxable income of £45,000 will pay £4,125 plus 20% of (£45,000 – £31,500).

    4. Marie-Jo has an annual taxable income equivalent to £4,000 per month. If she wants to save enough money each month to cover her tax for the year, how much must she save as a rough percentage of her monthly income?
  • 1
    2

    Explanation

    The correct answer is D.

    £4,000 per month = £48,000 per year, i.e. 3rd tax bracket

    Tax for the year = £4,125 + [ 20% x (£48,000 – £31,500) ]  = £4,125 + 20% x 16,500 = £4,125 + 3,300 = £7,425

    Percentage of income = (£7,425 / £48,000) x 100 = 15.5% (3sf)

    Post Comment

    Annual Taxable Income Bracket (£)

    Tax Rate

    Total Tax paid (£) at the top of this taxable income bracket

    0 – 8,950

    10%

    895

    8,950 – 36,250

    15%

    4,990

    36,250 – 87,850

    25%

    17,890

    87,850 – 183,250

    28%

    44,602

    183,250 – 400,000

    33%

    116,129

    400,000 and over

    39.6%

     

    The table shows the total tax paid (£) on annual taxable income.

    For example, a person with an annual taxable income of £30,000 will pay £895 plus 15% of (£30,000 – £8,950).

    5. Lucia pays £1,900 per month in income tax. To the nearest £10, what is her annual salary, after tax is deducted?
  • 3
    7

    Explanation

    The correct answer is A.

    Annual tax paid within 4th bracket = (£1,900 x 12) – £17,890 = £4,910

    Income within 4th bracket = £4,910 / 0.28 = £17,535.71 (2dp)

    Post-tax Salary = (£87,850 + £17,535.71) – £22,800 = £82,585.71 (2dp) = £82,590 to the nearest £10

    Post Comment
    Nana Pomaa Sefa-Attakora Medicmind Tutor

    Mon, 02 Aug 2021 12:29:24

    WHERE IS 22,800 COMING FROM

    zohar sohail Medicmind Tutor

    Fri, 13 Aug 2021 23:07:39

    1,900 times 12 = 22,800

    Future Medicmind Tutor

    Thu, 19 Aug 2021 18:55:33

    How do we know it's in the fourth bracket? Why are we taking away 17,890?

    mb Medicmind Tutor

    Mon, 30 Aug 2021 10:21:31

    because it can't be bracket 3 because max total tax paid is 17890, which is more than her total tax paid (22800) so then you have to takeaway 17890 to find out how much of the income has 28 percent tax

    Annual Taxable Income Bracket (£)

    Tax Rate

    Total Tax paid (£) at the top of this taxable income bracket

    0 – 8,950

    10%

    895

    8,950 – 36,250

    15%

    4,990

    36,250 – 87,850

    25%

    17,890

    87,850 – 183,250

    28%

    44,602

    183,250 – 400,000

    33%

    116,129

    400,000 and over

    39.6%

     

    The table shows the total tax paid (£) on annual taxable income.

    For example, a person with an annual taxable income of £30,000 will pay £895 plus 15% of (£30,000 – £8,950).

    6. Ezra pays £1,450 per month in income tax. What is his annual taxable income?
  • 1
    1

    Explanation

    The correct answer is E.

    Annual tax = £1,450 x 12 = £17,400, i.e. in 3rd tax bracket

    Tax paid within 3rd bracket = £17,400 – £4,990 = £12,410

    Income within 3rd bracket = £12,410 / 0.25 = £49,640

    Total income = £36,250 + £49,640 = £85,890

    Post Comment
    Sedra Medicmind Tutor

    Wed, 21 Jul 2021 19:30:49

    like i was really confused but now i am okay hehehe

    David Medicmind Tutor

    Sat, 04 Sep 2021 20:44:19

    How do you figure out they were in the 3rd tax bracket

    David Medicmind Tutor

    Sat, 04 Sep 2021 20:44:56

    nevermind

    Annual Taxable Income Bracket (£)

    Tax Rate

    Total Tax paid (£) at the top of this taxable income bracket

    0 – 8,950

    10%

    895

    8,950 – 36,250

    15%

    4,990

    36,250 – 87,850

    25%

    17,890

    87,850 – 183,250

    28%

    44,602

    183,250 – 400,000

    33%

    116,129

    400,000 and over

    39.6%

     

    The table shows the total tax paid (£) on annual taxable income.

    For example, a person with an annual taxable income of £30,000 will pay £895 plus 15% of (£30,000 – £8,950).

    7. Delilah is promoted at work, and her salary rises from £80,000 to £90,000 pre-tax. By how much does the amount of tax she pays change?
  • 1
    0

    Explanation

    The correct answer is C.

    Old tax = £4,990 + [ 25% x (£80,000 – £36,250) ] = £15,927.50

    New tax = £17,890 + [ 28% x (£90,000 – £87,850) ] = £18492

    Increase = £18492 – £15927.50 = £2564.50

    Post Comment
    anon Medicmind Tutor

    Fri, 17 Sep 2021 22:19:30

    honestly these questions are all good and well but we have 40 seconds to answer ????????? like ????

    Annual Taxable Income Bracket (£)

    Tax Rate

    Total Tax paid (£) at the top of this taxable income bracket

    0 – 8,950

    10%

    895

    8,950 – 36,250

    15%

    4,990

    36,250 – 87,850

    25%

    17,890

    87,850 – 183,250

    28%

    44,602

    183,250 – 400,000

    33%

    116,129

    400,000 and over

    39.6%

     

    The table shows the total tax paid (£) on annual taxable income.

    For example, a person with an annual taxable income of £30,000 will pay £895 plus 15% of (£30,000 – £8,950).

    8. Last year, Helga paid £9,166 per month in income tax. After tax deductions, how much did she earn in the year, to the nearest £?
  • 0
    6

    Explanation

    The correct answer is E.

    Annual Tax within 5th bracket = (£9,166 x 12) – £44,602 = £65,390

    Income within 5th bracket = £65,390 / 0.33 = £198,151.52

    Post-tax income = (£183,250 + £198,151.52) – (£9,166 x 12) = £271,409.52 (2dp) = £271,410 to the nearest £

    Post Comment

    Annual Taxable Income Bracket ($)

    Tax Rate

    Total Tax paid ($) at the top of this taxable income bracket

    0 – 12,000

    12%

    1,440

    12,000 – 44,120

    16%

    6,579.20

    44,120 – 71,450

    22%

    12,591.80

    71,450 – 151,000

    35%

    40,434.30

    151,000 and over

    50%

     

    The table shows the total tax paid ($) on annual taxable income.

    For example, a person with an annual taxable income of $30,000 will pay $1,440 plus 16% of ($30,000 – $12,000).

    9. Leanne earns $63,000 a year. How much income tax does she pay?
  • 2
    1

    Explanation

    The correct answer is C.

    Total Tax = $6,579.20 + [ 22% x ($63,000 – $44,120) ]

    = $6,579.20 + (22% x $1,880) = $6,579.20 + $4,154 

    = $10,732.80

    Post Comment
    Moira Medicmind Tutor

    Thu, 19 Aug 2021 10:13:14

    In line two, we should read (22% x 18880) instead of 1880

    Annual Taxable Income Bracket ($)

    Tax Rate

    Total Tax paid ($) at the top of this taxable income bracket

    0 – 12,000

    12%

    1,440

    12,000 – 44,120

    16%

    6,579.20

    44,120 – 71,450

    22%

    12,591.80

    71,450 – 151,000

    35%

    40,434.30

    151,000 and over

    50%

     

    The table shows the total tax paid ($) on annual taxable income.

    For example, a person with an annual taxable income of $30,000 will pay $1,440 plus 16% of ($30,000 – $12,000).

    10. Symala earns $23,158 a year. How much income tax does she pay?
  • 1
    0

    Explanation

    The correct answer is B.

    Total Tax = $1,440 + [ 16% x ($23,158 – $12,000) ]

    = $1,440 + (16% x $11,158) = $1,440 + $1,785.28 

    = $3,225.28

    Post Comment

    Annual Taxable Income Bracket ($)

    Tax Rate

    Total Tax paid ($) at the top of this taxable income bracket

    0 – 12,000

    12%

    1,440

    12,000 – 44,120

    16%

    6,579.20

    44,120 – 71,450

    22%

    12,591.80

    71,450 – 151,000

    35%

    40,434.30

    151,000 and over

    50%

     

    The table shows the total tax paid ($) on annual taxable income.

    For example, a person with an annual taxable income of $30,000 will pay $1,440 plus 16% of ($30,000 – $12,000).

    11. Nathan’s annual taxable income is $50,000. What, to the nearest %, is the average rate of income tax he pays over the entirety of his salary?
  • 1
    0

    Explanation

    The correct answer is C.

    Annual Tax = $6,579.20 + [ 22% x ($50,000 – $44,120) ] 

    = $6,579.20 + (22% x $5,880) = $6,579.20 + $1,293.60 = $7,872.80

    Average tax rate = 7,872.80 / 50,000 x 100 = 16% (2sf)

    Post Comment

    Annual Taxable Income Bracket ($)

    Tax Rate

    Total Tax paid ($) at the top of this taxable income bracket

    0 – 12,000

    12%

    1,440

    12,000 – 44,120

    16%

    6,579.20

    44,120 – 71,450

    22%

    12,591.80

    71,450 – 151,000

    35%

    40,434.30

    151,000 and over

    50%

     

    The table shows the total tax paid ($) on annual taxable income.

    For example, a person with an annual taxable income of $30,000 will pay $1,440 plus 16% of ($30,000 – $12,000).

    12. One year, the lower and upper bounds of each income tax bracket increase by 10%. As a result, how does the amount of tax Mel pays annually on her salary of $38,000 change?
  • 0
    0

    Explanation

    The correct answer is D.

    The lowest upper bound becomes $13,200, and the tax paid at the top of the bottom bracket becomes 12% x 13,200 = $1,584

    Old tax = $1,440 + [ 16% x ($38,000 – $12,000) ] = $5,600

    New tax = $1,584 + [ 16% x ($38,000 – $13,200) ] = $5,552 ($48 lower)

    Post Comment
    sedra Medicmind Tutor

    Thu, 22 Jul 2021 02:30:37

    did not get this at all

    Moira Medicmind Tutor

    Thu, 19 Aug 2021 12:51:40

    I realize that who ever is giving the solution, they skip few steps but it is easy to understand if you do the calculation yourself Here. 38000 Old tax up to 12000 = 1440 then you deduct 38000 - 12000 = 26000 Then 26000 x 16% = 4160 Add 1440 + 4160 = 5600 But there is an increase of 10% - the new taxes 12000 x 10% = 1200 + 12000 = 13200 therefore new tax + 10% to the old tax directly so 1440 x 10% = 144 + 1440 = 1584 New tax 13200 x 12% = 1580 Then 38000 - 13200 = 24800 x 16% = 3968 Total for new taxes = 1584 + 3968 = 5552 So, old - new taxes = 5600 - 5552 = 48 Bit longer in calculation but it really help to see the big picture of how to calculate. Once you get your grip on it, it very easy and quick. Good luck

    UK income tax allowances, rates and bands

    Income tax allowances

    2016-17 (£)

    2017-18 (£)

    Personal allowance for people aged under 60

    7,050

    7,275

    Personal allowance for people aged 60-74

    9,220

    9,400

    Personal allowance for people aged 75 and over

    9,850

    9,950

     

    Current UK income tax bands

    Income tax bands

    2016-17 Rate

    2017-18 Rate

    2016-17 (£)

    2017-18 (£)

    Starting Rate

    12%

    12%

    0 – 2,650

    0 – 2,850

    Basic Rate

    24%

    24%

    2,650 – 35,000

    2,850 – 36,000

    Higher Rate

    44%

    44%

    Over 35,000

    Over 36,000

    In order to calculate the amount received from income after tax, you need to know:

    • the allowances – income tax is not deducted from these
    • the bands into which income is allocated
    • the different rates at which income tax will be deducted from the bands

    For example, in 2016-17, someone aged 45 earning £20,000 per year, will:

    • have a tax-free allowance of £7,050
    • pay tax at 12% on £2,650
    • and pay tax at 24% on the remaining £10,300
    13. How much would a 30-year-old with an annual salary of £41,000 pay in income tax during the tax year 2016-17?
  • 0
    3

    Explanation

    The correct answer is E.

    Personal allowance, under 60, 2016-17 = £7,050

    Tax in Starting band = 12% x £2650 = £318

    Tax in Basic band = 24% x ((£41,000 – £7,050 – £2,650) = £7,512

    Total Tax = £318 + £7,512 = £7,830

    Post Comment
    . Medicmind Tutor

    Thu, 02 Sep 2021 14:10:24

    Why do you minus the 7050 and 2650 from 41,000?

    amy Medicmind Tutor

    Fri, 17 Sep 2021 22:23:23

    the 7050 is from the income tax allowance (first table) which means they can't get taxed on this, and the 2650 is taken away from the remainder to see how far into the 2nd tax band the person is. Kinda hard to explain in writing hope that made sense!

    UK income tax allowances, rates and bands

    Income tax allowances 2016-17 (£) 2017-18 (£)
    Personal allowance for people aged under 60 7,050 7,275
    Personal allowance for people aged 60-74 9,220 9,400
    Personal allowance for people aged 75 and over 9,850 9,950

     

    Current UK income tax bands
    Income tax bands 2016-17 Rate 2017-18 Rate 2016-17 (£) 2017-18 (£)
    Starting Rate 12% 12% 0 – 2,650 0 – 2,850
    Basic Rate 24% 24% 2,650 – 35,000 2,850 – 36,000
    Higher Rate 44% 44% Over 35,000 Over 36,000

    In order to calculate the amount received from income after tax, you need to know:

    • the allowances – income tax is not deducted from these
    • the bands into which income is allocated
    • the different rates at which income tax will be deducted from the bands

    For example, in 2016-17, someone aged 45 earning £20,000 per year, will:

    • have a tax-free allowance of £7,050
    • pay tax at 12% on £2,650
    • and pay tax at 24% on the remaining £10,300
    14. What would the monthly tax deduction be from the salary of a 62-year-old earning £17,500 during the 2017-18 tax year?
  • 1
    4

    Explanation

    The correct answer is B.

    Personal allowance, 60-74, 2017-18 = £9,400

    Tax in Starting band = 12% x £2,850 = £342

    Tax in Basic band = 24% x (£17,500 – £9,400 – £2,850) = £1,260

    Monthly Tax = (£342 + £1,260) / 12 = £133.50

    Post Comment
    Rayyan Malik Medicmind Tutor

    Wed, 17 Feb 2021 13:28:34

    The issue with a question, answer option repeated twice and right answer not listed. 133.50

    UK income tax allowances, rates and bands

    Income tax allowances

    2016-17 (£)

    2017-18 (£)

    Personal allowance for people aged under 60

    7,050

    7,275

    Personal allowance for people aged 60-74

    9,220

    9,400

    Personal allowance for people aged 75 and over

    9,850

    9,950

     

    Current UK income tax bands

    Income tax bands

    2016-17 Rate

    2017-18 Rate

    2016-17 (£)

    2017-18 (£)

    Starting Rate

    12%

    12%

    0 – 2,650

    0 – 2,850

    Basic Rate

    24%

    24%

    2,650 – 35,000

    2,850 – 36,000

    Higher Rate

    44%

    44%

    Over 35,000

    Over 36,000

    In order to calculate the amount received from income after tax, you need to know:

    • the allowances – income tax is not deducted from these
    • the bands into which income is allocated
    • the different rates at which income tax will be deducted from the bands

    For example, in 2016-17, someone aged 45 earning £20,000 per year, will:

    • have a tax-free allowance of £7,050
    • pay tax at 12% on £2,650
    • and pay tax at 24% on the remaining £10,300
    15. How much would a 52-year-old with an annual salary of £43,000 pay in income tax during the tax year 2017-18?
  • 0
    1

    Explanation

    The correct answer is C.

    Personal allowance, under 60, 2017-18 = £7,275

    Tax in Starting band = 12% x £2,850 = £342

    Tax in Basic band = 24% x (£43,000 – £7,275 – £2,850) = £7,890

    Total Tax = £342 + £7,890 = £8,232

    Post Comment

    UK income tax allowances, rates and bands

    Income tax allowances 2016-17 (£) 2017-18 (£)
    Personal allowance for people aged under 60 7,050 7,275
    Personal allowance for people aged 60-74 9,220 9,400
    Personal allowance for people aged 75 and over 9,850 9,950
    Current UK income tax bands
    Income tax bands 2016-17 Rate 2017-18 Rate 2016-17 (£) 2017-18 (£)
    Starting Rate 12% 12% 0 – 2,650 0 – 2,850
    Basic Rate 24% 24% 2,650 – 35,000 2,850 – 36,000
    Higher Rate 44% 44% Over 35,000 Over 36,000

    In order to calculate the amount received from income after tax, you need to know:

    • the allowances – income tax is not deducted from these
    • the bands into which income is allocated
    • the different rates at which income tax will be deducted from the bands

    For example, in 2016-17, someone aged 45 earning £20,000 per year, will:

    • have a tax-free allowance of £7,050
    • pay tax at 12% on £2,650
    • and pay tax at 24% on the remaining £10,300
    16. How much would a 76-year-old with an annual salary of £47,200 pay in income tax during the tax year 2016-17?
  • 0
    4

    Explanation

    The correct answer is D.

    Personal allowance = £9,850

    Tax in S band = 12% x £2,650 = £318

    Tax in Basic band = 24% x (£35,000 – £2,650) = £7,764

    Tax in Higher band = 44% x (£47,200 – £35,000 – £9,850) = £1,034

    Total Tax = £318 + £7,764 + £1,034 = £9,116

    Post Comment
    Trish

    Sat, 10 Jul 2021 02:14:41

    Hi, For the Tax in the basic band, why do you work out the difference between the lower and higher incomes in that bracket and multiply by the rate? I thought it would be taxed at 35000 because his income after personal allowance is over 35000

    MM Tutor Medicmind Tutor

    Hi Trish, thanks for your comment! If I've understood your question correctly, the misunderstanding here comes from how we calculate brackets. The tax bracket works like a tower; the values between each bracket are taxed at the corresponding rate. Therefore, we tax the first £2,650 at 12%, then any money earned between that and £35,000 at 24%, then any money earned about £35,000 at 44%. For further clarification, check out the amazing Daniel explaining tax questions on our YouTube channel! (https://www.youtube.com/watch?v=SzBW9MYP1Ig)

    Alexis Medicmind Tutor

    Fri, 17 Sep 2021 15:30:15

    why is the personal allowance not granted to the person tax free

    UK income tax allowances, rates and bands

    Income tax allowances

    2012-13 (£)

    2013-14 (£)

    Personal allowance for people aged under 55

    5,235

    5,485

    Personal allowance for people aged 55-69

    6,115

    6,290

    Personal allowance for people aged 70 and over

    6,720

    6,960

     

    Current UK income tax bands

    Income tax bands

    2012-13 Rate

    2013-14 Rate

    2012-13 (£)

    2013-14 (£)

    Starting Rate

    11%

    11%

    0 – 4,100

    0 – 4,240

    Basic Rate

    18%

    18%

    4,100 – 28,500

    4,240 – 29,990

    Higher Rate

    45%

    45%

    Over 28,500

    Over 29,990

    In order to calculate the amount received from income after tax, you need to know:

    • the allowances – income tax is not deducted from these
    • the bands into which income is allocated
    • the different rates at which income tax will be deducted from the bands

    For example, in 2013-14, someone aged 57 earning £20,000 per year, will:

    • have a tax-free allowance of £6,290
    • pay tax at 11% on £4,240
    • and pay tax at 18% on the remaining £9,470
    17. Two colleagues at a supermarket both earn £21,000 per year. Given that one is 44 and the other is 66, what is the difference in their income tax contributions in 2012-13?
  • 0
    2

    Explanation

    The correct answer is A.

    44-year-old: 11% x £4,100 + 18% x (£21,000 – £4,100 – £5,235)

    = £2,550.70

    66-year-old: 11% x £4,100 + 18% x (£21,000 – £4,100 – £6,115)

    = £2392.30, which is £158.40 lower

    Post Comment
    Sedra Medicmind Tutor

    Thu, 22 Jul 2021 03:20:38

    oomg omg i got this one right omg

    Simon Medicmind Tutor

    Fri, 23 Jul 2021 21:31:02

    Man...things would be much better if we were provided with calculators we could hold in our hands during the exam in my opinion :(

    a Medicmind Tutor

    Fri, 17 Sep 2021 22:29:54

    I agree, the online calculator is way too basic and wastes more time than a normal one would so it goes against the time constraints of the ucat lol :( the hypocrisy

    UK income tax allowances, rates and bands

    Income tax allowances

    2012-13 (£)

    2013-14 (£)

    Personal allowance for people aged under 55

    5,235

    5,485

    Personal allowance for people aged 55-69

    6,115

    6,290

    Personal allowance for people aged 70 and over

    6,720

    6,960

     

    Current UK income tax bands

    Income tax bands

    2012-13 Rate

    2013-14 Rate

    2012-13 (£)

    2013-14 (£)

    Starting Rate

    11%

    11%

    0 – 4,100

    0 – 4,240

    Basic Rate

    18%

    18%

    4,100 – 28,500

    4,240 – 29,990

    Higher Rate

    45%

    45%

    Over 28,500

    Over 29,990

    In order to calculate the amount received from income after tax, you need to know:

    • the allowances – income tax is not deducted from these
    • the bands into which income is allocated
    • the different rates at which income tax will be deducted from the bands

    For example, in 2013-14, someone aged 57 earning £20,000 per year, will:

    • have a tax-free allowance of £6,290
    • pay tax at 11% on £4,240
    • and pay tax at 18% on the remaining £9,470
    18. To the nearest £0.01, what is the average monthly income tax contribution of a 21-year-old who earns £5,309 during the 2012-13 tax year?
  • 0
    1

    Explanation

    The correct answer is A.

    Taxable income = £5,309 – £5,235 = £74 per year

    Tax at Starting rate = 11% x £74 = £8.14 per year

    Monthly Tax = £8.14 / 12 = £0.678 (3sf) per month

    i.e. £0.68 to the nearest £0.01

    Post Comment

    UK income tax allowances, rates and bands

    Income tax allowances

    2012-13 (£)

    2013-14 (£)

    Personal allowance for people aged under 55

    5,235

    5,485

    Personal allowance for people aged 55-69

    6,115

    6,290

    Personal allowance for people aged 70 and over

    6,720

    6,960

     

    Current UK income tax bands

    Income tax bands

    2012-13 Rate

    2013-14 Rate

    2012-13 (£)

    2013-14 (£)

    Starting Rate

    11%

    11%

    0 – 4,100

    0 – 4,240

    Basic Rate

    18%

    18%

    4,100 – 28,500

    4,240 – 29,990

    Higher Rate

    45%

    45%

    Over 28,500

    Over 29,990

    In order to calculate the amount received from income after tax, you need to know:

    • the allowances – income tax is not deducted from these
    • the bands into which income is allocated
    • the different rates at which income tax will be deducted from the bands

    For example, in 2013-14, someone aged 57 earning £20,000 per year, will:

    • have a tax-free allowance of £6,290
    • pay tax at 11% on £4,240
    • and pay tax at 18% on the remaining £9,470
    19. During the 2013-14 tax year, Martin, who is 61-years-old, receives a taxable £2,500 bonus. How much more does he pay in income tax compared to what would have been deducted from his £25,000 salary alone?
  • 0
    1

    Explanation

    The correct answer is C.

    Personal allowance and Tax at Starting rate remain unchanged

    Old Tax at Basic = 18% x (£27,500 – £4,240 – £6,290) = £3,054.60

    New Tax at Basic = 18% x (£25,000 – £4,240 – £6,290) = £2,604.60

    Difference = £450

    Post Comment
    sedra Medicmind Tutor

    Thu, 22 Jul 2021 12:19:06

    this one was really tricky wtf

    UK income tax allowances, rates and bands

    Income tax allowances

    2012-13 (£)

    2013-14 (£)

    Personal allowance for people aged under 55

    5,235

    5,485

    Personal allowance for people aged 55-69

    6,115

    6,290

    Personal allowance for people aged 70 and over

    6,720

    6,960

     

    Current UK income tax bands

    Income tax bands

    2012-13 Rate

    2013-14 Rate

    2012-13 (£)

    2013-14 (£)

    Starting Rate

    11%

    11%

    0 – 4,100

    0 – 4,240

    Basic Rate

    18%

    18%

    4,100 – 28,500

    4,240 – 29,990

    Higher Rate

    45%

    45%

    Over 28,500

    Over 29,990

    In order to calculate the amount received from income after tax, you need to know:

    • the allowances – income tax is not deducted from these
    • the bands into which income is allocated
    • the different rates at which income tax will be deducted from the bands

    For example, in 2013-14, someone aged 57 earning £20,000 per year, will:

    • have a tax-free allowance of £6,290
    • pay tax at 11% on £4,240
    • and pay tax at 18% on the remaining £9,470
    20. As the 2013-14 tax year begins, Jean’s annual salary is raised from £33,000 to £35,000. Compared with the previous year, how much more does he end up paying in income tax, given that he is 39 years-old?
  • 2
    0

    Explanation

    The correct answer is B.

    2012-13: 11% x £4,100 + 18% x (£33,000 – £4,100 – £5,235)

    = £4,710.70 

    2013-14: 11% x £4,240 + 18% x (£35,000 – £4,240 – £5,485)

    = £5,015.90, which is £305.20 more

    Post Comment
    sedra Medicmind Tutor

    Thu, 22 Jul 2021 18:19:48

    yayyy i got this one correct hehheheh

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