Tax Flashcards
1
Q
Which amount of income is free of tax?
A
The first £12 570 a person earns
2
Q
When does personal allowance reduce ?
A
For those earning over 100 ,000
Such that anyone earning 125 140 gets no personal allowance
3
Q
What is the target rate ?
A
2 % + - 1
4
Q
When is the basic rate of income tax paid ?
A
20 % payable in the first 37 700 above personal allowance
5
Q
Higher rate of income tax paid ?
A
At 40 % on everything between 37 701 to 74 870 above personal allowance
6
Q
Additional rate of income tax paid ?
A
At 45 % on everything above 112 570 more than personal allowance
