Financial Maths Terms

What is gross income?

• Income before tax is deducted

• Income after tax is deducted

• Total savings

What is net income?

• Income before tax is deducted

• Income after tax is deducted

• The portion of your income you pay in taxes

What is gross tax?

• Tax before the tax credits are deducted

• Tax after the tax credits are deducted

True or false: 

Tax Payable = Gross Tax - Tax Credits

• True

• False

What does "per annum" mean?

• Per month

• Per year

• Per day

• Per decade

Sarah earns €93,000 per annum. Her standard rate cut-off point is €44,300.

If the standard rate is 20% and the higher rate is 40%, calculate her gross tax.

If Sarah's gross tax is €28,340 and her tax credits are €3,300 calculate her tax payable.

If Sarah's income is €93,000 and her tax payable is €25,040 calculate her net income