CEFE - Unit 1 - Topic 5 - Understanding Tax

What is Tax?

• Total Amount Exchanged

• Compulsory payments to the Government

• Benefits paid from the government

• Paid only by people who work

Taxes pay for...

• Pensions

• NHS

• Education

• All of the above

What is direct tax?

• It comes direct out of your bank account

• It is directed at a specific service

• It comes directly off your wages or salary (income)

• It comes directly off your benefits

What is a personal allowance?

• Pocket money from the Government

• How much an individual can earn before paying tax.

• The amount you are paid in Benefits

• The amount of paid holidays you get

What does VAT stand for?

• Value aided tax

• Very annoying tax

• Voluntary added tax

• Value added tax

What is VAT paid on?

• Income

• Profit

• Goods and services

• losses

The rate of VAT paid on most items in the uk is what?

• 15%

• 17.5%

• 20%

• 33%

Which of these are the 3 tax rates we pay in the UK?

• 10%, 30%, 50%

• 20%, 30%, 40%

• 20%, 40%, 45%

• 20%, 40%, 50%

Basic rate tax is payable at

• 20%

• 40%

• 45%

Higher rate tax is payable at

• 20%

• 40%

• 45%