Question

Carys is checking her tax bill for the last year.

The tax rates were as follows:
No tax of the first £11 000 of earnings.
Earnings in excess of of £11 000 and up to £43 000 taxed at a rate of 20%.
Earnings in excess of £43 000 and up to £150 000 taxed at a rate of 40%.
Earnings over £150 000 taxed at a rate of 45%.
Last year Carys, earned £45 600 before tax.
How much tax did she pay in total.
Show your working.

Answer 1

The correct answer is:

£18,240

Step-by-step explanation:

Carys earned £45,600. The tax rate for any earnings between £43,000 and £150,000 is 40%.

40% = 40/100 = 0.4; this makes 40% of 45600

0.4(45600) = 18240

Answer 2

£18240

since the amount she earned falls within the range of the tax rate 40%, multiply her earnings by 0.4.

£45600*0.4= 18240