Associate
- Joined
- 22 Sep 2014
- Posts
- 754
- Location
- South somewhere
I recognise those questions, you wouldn't happen to be applying for a job with one of the big 6 energy companies would you OP?
Couple of calculations I need help with please
- Thread starter kPATm
- Start date
The salary was £165,500 - you are £502 short if you add the amounts you have used in the multiplying calculations.
I calculate it as £58,975.
No it does not, if your read and work out the question as it's written you will reach the wrong answer just as I did, to prove the point:
"The income tax rate is shown in the table below" - It is.
"Given that the free tax allowance is currently £6,475, calculate the tax due in year 2010-2011 on a salary of £165,500" - Okay so the first £6,475 doesn't count towards tax leaving £159,025 that does, according to the table the 2010-11 rate for taxable salary "Over £150,000" is 50%, 50% of £159,025 is £79,512.5, which is wrong because you're not supposed to read it as it's written.
so yes it is sneaky, yes it requires knowledge of tax and no you don't need to just have to use a little brain power to work it out.
Exam questions shouldn't just need brain power, they are about testing knowledge, you know, facts not explicitly written in the question?
What would be the point of weeks/months of lessons if all the required information was in the question??Anyway, everybody should know how income tax bands work in the UK. Bit worrying that you didn't.
Hmm, it's not made obvious but a big part of passing a test is comprehension of the question. Lots of students failed lots of exams because they rushed into answering what they assumed was the question.
You certainly don't need to know anything about taxation to answer it correctly but if you do know a little about tax it will prompt you to double check.
Associate
- Joined
- 16 Jan 2013
- Posts
- 127
- Location
- Leicester
In this question you lose your full annual allowance if you earn over £112,950. £120,000 is using 2014/15 personal allowance.
What SciNet and Buckeyed did looks right. More importantly, do you understand how to work it out?
For anyone wondering, it's true that in 10/11 there would have been no personal allowance on 165,500, and also there would have been NI payments of £5,414.60
Actual net wage would have been £99,815.40.http://www.listentotaxman.com/165500?yr=2010
Soldato
- Joined
- 25 Sep 2009
- Posts
- 10,215
- Location
- Billericay, UK
The salary was £165,500 - you are £502 short if you add the amounts you have used in the multiplying calculations.
I calculate it as £58,975.
Your right! Well spotted.
I do but now I have to try and get the Sister-in-Law to suss it as well???
You know how to mathematic?
Soldato
- Joined
- 13 Jun 2011
- Posts
- 6,053
Your wrong about question 2
6475 personal allowance is no tax, 37400 is taxed at 20% giving 7480, 37402-150000 is 112600 at 40% giving 45040, remaining 9025 taxed at 50% giving 4512.5. Total tax is 57032.50. The personal allowance doesn't use up the basic rate band.
6475 personal allowance is no tax, 37400 is taxed at 20% giving 7480, 37402-150000 is 112600 at 40% giving 45040, remaining 9025 taxed at 50% giving 4512.5. Total tax is 57032.50. The personal allowance doesn't use up the basic rate band.
You're wrong about spellingses
Soldato
- Joined
- 13 Jun 2011
- Posts
- 6,053
To be fair i cheated and asked my accountant friend and pasted his answer lol. It must be right or he wouldnt be where he is
To be fair i cheated and asked my accountant friend and pasted his answer lol. It must be right or he wouldnt be where he is
Don't rely on your friend for tax advice.
Thats the way I had originally worked it out before starting the thread?