Test: Tax Questions - UCAT MCQ

UK income tax allowances, rates and bands

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

Q. What would the monthly tax deduction be from the salary of a 62-year-old earning £17,500 during the 2017-18 tax year?

UK income tax allowances, rates and bands

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

Q. How much would a 52-year-old with an annual salary of £43,000 pay in income tax during the tax year 2017-18?

UK income tax allowances, rates and bands

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

Q. How much would a 76-year-old with an annual salary of £47,200 pay in income tax during the tax year 2016-17?

UK income tax allowances, rates and bands

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

Q. 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?

UK income tax allowances, rates and bands

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

Q. 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?

UK income tax allowances, rates and bands

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

Q. 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?

UK income tax allowances, rates and bands

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

Q. 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?