Topic 1-5

Question 1

Class 4 National Insurance contributions are paid by self-employed individuals and are based on their annual profits.

Answer 1

True

Question 2

Credit unions are owned by the members and controlled through a voluntary board of directors.

Answer 2

True

Question 3

Personal belongings with a value of no more than £6,000 are exempt from capital gains tax.

Answer 3

True

Question 4

Match the individual to the national insurance contributions they are liable for. (Pick only two)

Answer 4

Jo, an employee of a national supermarket, earning £20,000 a year : Class 1.

Phil, a self-employed carpenter, earning £19,000 a year : Class 2 and class 4.

Question 5

Statutory Maternity Pay is taxable and subject to National Insurance contributions.

Answer 5

True

Question 6

Children’s clothes and books are exempt from value added tax.

Answer 6

False

Question 7

All UK residents, including children, have a personal allowance that can be deducted from income before income tax is charged.

Answer 7

True

Question 8

The rate of interest charged in the interbank market is the London interbank offered rate (Libor).

Answer 8

True

Question 9

Income-based Employment and Support Allowance does not depend on National Insurance contributions but is means-tested and not taxable.

Answer 9

True

Question 10

Match the following statements with the appropriate organisations. (Pick only two)

Answer 10

A mutual organisation : Has no shareholders and is owned by its members.

A proprietary organisation : A limited company that is owned by its shareholders.

Question 11

Working Tax Credit is designed to top up the earnings of employed people only. Self-employed people are ineligible.

Answer 11

False