Question

Carys is checking her tax bill for the last year.

The tax rates were as follows:
• No tax on the first £11 000 of earnings
• Earnings in excess 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?
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Answer 1

$7,440.

Explanation:

$0-$11,000 = no tax.

$11,000-$43,000 = 20%.

$43,000-$150,000 = 40%.

The earnings over $150,000 = 45%. etc....

$45,600, = Revenue

Tax is 11000-43000 is = 0.20 * (32000)

= 11000-43000 = 6400

Tax is 43000-45,600 is = 0.40 *(2600)

= 45,600-43000 = 1040

=6400+1040 =7440