Tax
What is the current personal allowance for most people?
£12,570
What does National Insurance help pay for?
State Pension, Benefits (JSA etc), Maternity leave, Bereavement leave
What does the term income mean?
Money earned from doing work or received from investments.
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FREE 100 POINTS
How Much of £20,000 per year is taxable?
£7,430
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FREE 200 POINTS
Name one way a person can earn income?
Self-Employed/Trade, Selling items online, Pension, Grants, Bank Savings accounts, landlord/renting out properly, Trust fund.
What does the tax code 1257L Mean?
Yearly tax free allowance of £12,570
What is the tax rate for someone earning £45,000 per year
20%
What is your National insurance contribution if you earn over £967 a week?
2%
What is gross pay?
Total amount of money earned BEFORE tax and deductions.
Why might somebody be put on a emergency tax code?
If it is your first job and the government are not aware of your salary earnings for the year
HARD: At what yearly income do you start to lose more of your personal allowance?
£100,000
At what weekly income do you start paying National insurance? ( to the nearest £)
£242.01
What types of income are not taxed?
First £1000 from self employment, First £1000 from property you rent or £7500 if you rent a room in your house, Income from ISAs, Certain State Benefits, National Lottery or premium bond wins, Anything earnt below your personal tax allowance.
What reasons may cause your tax code to change mid-employment?
If you start a second job/have multiple jobs, If you underpaid tax in the previous tax year, if your salary increased to £100,000, if your salary changed to a new tax bracket mid year