Question

Megan is checking her tax bill for the last year. the tax rates were as follows: no tax on the £11000 of earning earnings in excess of £11000 and up to £43000 tasted at a rate of 20% earnings in excess of £43000 and up to 150000 taxed at a rate of 40% earnings over £150000 taxed at 45% last year meghan earned £158900 before tax how much tax did she pay in total?

Answer 1

£53,205

Explanation:

Megan paid ...

0 on the first £11,000

.20 of the next £43,000 -11,000 = £6400

.40 of the next £150,000 -43,000 = £42,800

.45 of the next £158,900 -150,000 = £4,005

So, her total tax bill is ...

£6,400 +42,800 +4,0005 = £53,205

Megan paid a total of £53,205 in tax.