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Taxation Exercises
A Harry Pinkerton, a married man, earns £12,700 a year, and his wife earns £4,000, in the tax year 2000/81. There is a mortgage of £15,000 on their home on which they pay interest at 14.5% for the whole of the tax year.
(a) What is the net taxable joint income of this couple for the year 2000/81?
(b) What is the total tax liability for that year?
B
(a) Sarah Jones leaves school and starts work on 6 October 2000. During the tax year to 5 April 2001 she earns a weekly wage of £50.50. Using the rates quoted in this website calculate her taxable income for the tax year and the amount of her tax liability.
(b) If she receives a rise in pay of £15 a week after a year's service, and assuming no change in income tax rates but assuming an increase of all personal allowances of 20%, calculate taxable income and tax liability for the year 2001/82.
C John Fraser rents an unfurnished house from the owner on a long lease, paying a rent of £3000 a month; tenant is responsible for rates. The rateable value of the property is £462 per annum, the last assessment having been made ten years ago.
Taxation Test Questions
1. What is meant by direct, and what is indirect, taxation?
2. What is a tax year?
3. What, in brief, is meant by 'the budget'?
4. What are the two most common deductions that may be made from gross income to arrive at a figure for income that is assessable to income tax?
5. Discover the current rates of personal allowances.
6. Apart from personal allowances, what other allowances may be claimed in appropriate circumstances, and what is the term used to describe the residue of income after deduction of allowances?
7. What is the present... see: Taxation Test Questions