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QR12: Tax Questions (Tutoring)
Your Score:
Average Score of All Users:
You performed better than of students
Section Breakdown
| Your Score | Average of all Users | Percentile | |
|---|---|---|---|
| QR Tutorial 12 edition |
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).
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)
|
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).
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
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).
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)
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
p
Medicmind Tutor
Sun, 10 Jul 2022 21:05:42
How do you know the 1000 falls in the fourth tax bracket?
IR
Medicmind Tutor
Thu, 21 Jul 2022 13:47:20
it is in the 4th bracket, because you have to use the 10,000 and look at the third column, with the total tax paid. 10,000 is bigger than 8,815, so the person earns in the 4th bracket rather than the third bracket.
A
Medicmind Tutor
Tue, 02 Aug 2022 10:16:18
You know that it falls into the fourth tax bracket because it says that they pay £10,000, so it can't be the third because it says the maximum for that is £8,815. That means it must be the one after it.
|
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).
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)
im bad at math
Medicmind Tutor
Tue, 16 Aug 2022 17:36:03
why is it : 4,125+ [20% x (48,000-31,500)]?
|
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).
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
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
nigger
Medicmind Tutor
Mon, 26 Jun 2023 14:51:31
nigger
|
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).
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
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).
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
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).
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 £
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).
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
= $10,732.80
Moira
Medicmind Tutor
Thu, 19 Aug 2021 10:13:14
In line two, we should read (22% x 18880) instead of 1880
KA
Medicmind Tutor
Mon, 04 Apr 2022 08:19:58
you have 1880, it should be 18880.
|
Annual Taxable Income Bracket ($) |
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).
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
= $3,225.28
|
Annual Taxable Income Bracket ($) |
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).
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 = $7,872.80
Average tax rate = 7,872.80 / 50,000 x 100 = 16% (2sf)
|
Annual Taxable Income Bracket ($) |
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).
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)
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
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
.
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!
A
Medicmind Tutor
Tue, 05 Jul 2022 20:02:13
WHERE DID THE £318 COME FROM
A
Medicmind Tutor
Tue, 05 Jul 2022 20:19:34
NVM
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
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
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
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
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
Explanation
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
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
..
Medicmind Tutor
Mon, 25 Jul 2022 14:38:18
Personal allowance= £9,850 Taxable income= £47,200 - £9,850 = £ 37,350 Tax in Starting band= £2,650 x 12% = £318 Remaining taxable income= £37,350 - £2,650= £34,700 Tax in Basic band= £34,700 x 24% = £8,328 Total tax= £318 + £8,328 = £8,646 ??
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
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
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
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
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
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
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
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
sedra
Medicmind Tutor
Thu, 22 Jul 2021 18:19:48
yayyy i got this one correct hehheheh
A
Medicmind Tutor
Sat, 11 Jun 2022 18:14:46
where does 4240 comes from?
Kyro
Medicmind Tutor
Tue, 26 Jul 2022 17:27:51
It's from the 2013-2014 Statring rate tax band
H
Medicmind Tutor
Sat, 21 Jan 2023 09:19:10
This one was quite difficult
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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
Tue, 26 Jul 2022 07:15:06
The values in the table are wrong, 31,500 * 0.15 is 4,725, not 4125.
Sat, 11 Mar 2023 03:33:36
I got this wrong