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## QR Tutorial 12 edition

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QR Tutorial 12 edition |

Your score:

Average score:

You performed better than of students

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

**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)

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:

5

5

**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

Laila
Medicmind Tutor

Tue, 21 Dec 2021 21:50:12

Why is 32600 on 37%? isn't at 20%?? Can anyone let me know pls? thank you

Ice bear
Medicmind Tutor

Thu, 10 Feb 2022 08:09:56

Hi, this is how I worked it out: Annual income = $114,050 Using her income, find the tax bracket she most likely sits in = bracket 5. The maximum annual taxable income in bracket 5 is $184,000. Since she makes $114,050 the amount of money she is taxed cannot be $55,469. In other words, 114,050 - 81,450 (minimum income in that bracket) = $32,600. Only $32,600 of Olenka's income sits within bracket 5. Therefore, Olenka will only be taxed 0.37 (tax rate) of $32,600 = 0.37 x 32600 = 12,062. So now we know how much she is being taxed in bracket 5. All that is left is to add the amount she is taxed from bracket 4 (only). E.g. 12,062 + 16500 = $28,562 is the amount Olenka is taxed with her salary of $114050. I hope this helps someone :)

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

**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.

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?

2

2

**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

**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

2

**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

**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.

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

**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

Winner
Medicmind Tutor

Mon, 24 Jan 2022 06:05:13

Very easy

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

**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

KA
Medicmind Tutor

Mon, 04 Apr 2022 08:19:58

you have 1880, it should be 18880.

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

**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

**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.

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

**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

4

**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

**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

**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

**The correct answer is D.**

Personal allowance = £9,850

Taxable income = £47,200 – £9,850 = £37,350

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 (£37,350 – £35,000) = £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

Victoria
Medicmind Tutor

Wed, 10 Nov 2021 11:08:54

Why was the person not granted the personal allowance of £9,850? The taxable income should have then been 37 350 and The total income tax = £318 + 24% x (£37,350 – £2,650) = 318 + 8328 = 8684

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

**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

**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

**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

**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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Mon, 30 Aug 2021 09:02:41

where did 23300 come from

Wed, 01 Sep 2021 23:40:33

WHAAAAAAAA?

Wed, 08 Sep 2021 05:25:53

That's the annual taxable income