Lesson 2 - Economic policy & financial regulation Flashcards
A person who is UK resident for tax purposes only pays income tax on earnings generated in the UK.
True or false?
False
A person may become UK domiciled once they have been settled in the country for a number of years.
True or False?
True
Which of the following is not assessable for income tax purposes?
a. Tips
b. Interest from bank and building society deposits.
c. Lottery prizes
d. Rents and land property
C
In what order of priority is income taxed?
Non savings income, savings income, then dividend income.
Blind persons allowance can be transferred to a spouse or civil partner if the blind person does not use the allowance.
True or false?
True
Anna worked abroad for five years but is now back working in the UK. What class of National Insurance contributions could she pay to improve her contribution record for the state pension?
Class 3
Anna earns 22k. She also receives £500 interest on her building society deposit account. Calculate the income tax payable.
£1886
Anna is a company director. In the current tax year, She draws a salary of 12.5k. She has a dividend income of 27k. Calculate her income tax payable.
£1875
Jemma is self employed and is in receipt of blind persons allowance. In the current tax year, her gross profit is 20k and she has allowable expenses of 2.5k. She has to pay class 4 NICs at 9% on her taxable profit above 9.5k.
Calculate the income tax and the income tax and class 4 NICs payable.
£1320
Ashley’s salary is 75k and he is paid savings interest of £650. He also has dividend income of 7k. Calculate the icome tax payable.
£1625
