LIBF- UNIT 2 TOPIC 8

An employed person pays which type of National Insurance?

• Class 1

• Class 2

• Class 3

• Class 4

A self-employed person if they earn enough will pay which types of National insurance

• Class 1

• Class 1+2

• Class 2+3

• Class 2+4

What is the deadline for self-employed people to submit their tax returns

• 31st January

• 01st April

• 06th April

• 31st December

You get sacked for being a wally. Which document will you receive?

• P45

• P60

a higher rate tax payer can earn how much interest from savings before they pay tax?

• £100

• £500

• £1000

• £10000

a basic rate tax payer can earn how much interest from savings before they pay tax?

• £100

• £500

• £1000

• £10000

You work for a big business. Which document will you receive at the end of the tax year?

• P45

• P60

Where is tax paid?

• Government

• HMRC

• Chancellor

• The Queen

Answer explanation

HMRC IS her majesty's revenue and customs

PAYE or Pay as you Earn was introduced in what year?

• 1939

• 1944

• 1984

• 2021

Answer explanation

PAYE was introduced in 1944

as the Second World War saw

an increased reliance on

taxation. The system was

designed for better efficiency in

processing a growing number

of taxpayers.

Why would a BR tax code be used for an employee?

• If they are a basic rate tax payer

• If they have moved jobs mid year and have been assigned an emergency tax code

• If they get benefits in kind

Answer explanation

The tax code BR is an

instruction to the employer to deduct basic-rate tax on all the employee’s

earnings without taking off the personal allowance. This often happens

when someone starts work for the first time or starts a new job, and it is a

temporary measure until HMRC can sort out the correct tax code. There’s

no need to panic, though, as once the correct tax code is sorted out, any

overpaid tax is refunded.