2.2.1 Calculating Income Tax
This quiz tests your ability to calculate the Income Tax you should pay on an income.
The correct answer is c.
Well done. The full computation is as follows:
Income from employment or pension £26,850
Minus personal allowance £11,850
Taxable pay £15,000
Basic rate 20% on £15,000 is £3000
Tax to be paid in the year 2018/19 is therefore £3000
£3000 of tax would be paid.
This is calculated as follows: first, subtract the tax-free amount of £11,850 from £26,850 to give £15,000 of taxable income. The next £15,000 is taxed at 20%. This is £3000.