PERSONAL FINANCE

Question 1

Percentage increase/decrease

Answer 1

Difference ➗ original x 100

Question 2

Income tax

Answer 2

Amount of money from your salary that goes to the government

Question 3

Personal allowance

Answer 3

Everyone is entitled to earn a certain amount before they have to pay tax. 12,570

Question 4

Taxable income=

Answer 4

Annual salary -personal allowance (12,570)

Question 5

Steps for basic rate tax

Answer 5

1. Find taxable income first
2. if needed find annual salary
   Then find 205. If needed ➗ by 12 for monthly tax

Question 6

Steps for higher rate tax

Answer 6

1. Find taxable income . (Take away 12,570)
2. Take the taxable income away from £37,700
   3.find 40% of this
   4..taxable income is more than (37,700) so find 20%(£7540)
3. Add the basic and higher rate tax