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QR12: Tax Questions (Tutoring)
Your Score: + Band
Average Score of All Users:
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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
| 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)
| 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)
| 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
| 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
| 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
| 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 £
| 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
= $10,732.80
| Annual Taxable Income Bracket ($) | 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)
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
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
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, 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
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
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
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
QR Tutorial 12 edition Review Screen
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