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5 January, 02:49

Megan is checking her tax bill for the last year.

The tax rates were as follows;

-no tax on the first £11 000 of earnings

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Answers (1)
  1. 5 January, 04:29
    -1
    Given that Megan's tax rates were as follows:

    No tax one the first £11000 of earnings

    Earnings in excess of £11000 and up to £43000 taxed at a rate of 20%

    Earning in excess of 43000 and up to £150000 taxed at a rate of 40%

    Earnings over £150000 taxed at a rate of 45%

    If Megan earned £158900 before tax last year, the amount of tax she paid in total is given as follows:

    First £11000 = £0 tax

    Balance after first £11000 = £158900 - £11000 = £147900

    Next (£43000 - £11000 = £32000) = 20% of £32000 = 0.2 x £32000 = £6400 tax

    Balance after next £32000 = £147900 - £32000 = £115000

    Next (£150000 - £43000 = £107000) = 40% of £107000 = 0.4 x £107000 = £42800 tax

    Balance after next £107000 = £115000 - £107000 = £8000

    Remaiming £8000 = 45% of £8000 = 0.45 x £8000 = £3600 tax

    Total tax = £6400 + £42800 + £3600 = £52800

    Therefore, she paid a total of £52800 in tax last year.
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