Income Tax and National Insurance



Core Maths – Finance assessment MERGEFIELD Sheet_no 1Income Tax and National InsuranceQ1) Cat has a job that pays and annual salary of ? MERGEFIELD Q1_salary 85800She pays Income Tax with a personal allowance of ?12500She also pays National InsuranceCalculate the amount of Income Tax she pays for the yearCalculate the amount of National Insurance she pays for the yearQ2)Tom is employed on an annual salary of MERGEFIELD "Q2_salary" 25300He has a personal, tax-free allowance of ?12500He has to make full National Insurance contributions.Each month, Tom saves 15% of his take-home pay.How much has he saved after one year?**********************************************************************************National Insurance 2020-2021Percentage NI dueMin weekly incomeMax weekly incomeMin yearly incomeMax yearly income0%??183??9 50012%?183.01?962?9 500.01?50 0002%Above ?962?Above ?50 000?Income Tax 2020 — 2021Everyone in the UK has a personal allowance. This is their annual amount of tax-free income.The standard personal allowance for 2020-2021 is ?12 500?563626067691000RateTaxable IncomeBasic: 20%Up to ?37 500Higher: 40%?37 501 to ?150 000 ................
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