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Finance for Students UK

Total questions: 15

Worksheet time: 9mins

Name
Class
Date
1.

Where is the Bank of England

a)

Threadneedle St, London

b)

City Street, London

c)

Peoples Square, West London

d)

Westminster, London

2.

What does HMRC do?

a)

Takes money from the Government and gives it to the people

b)

Takes money from the People and gives it to the Government

c)

Speculates on international money markets

d)

It helps banks save our money

3.

What is Interest when considering your finances

a)

It is how much money the HMRC deducts from your salary

b)

It is the money you save buy purchasing online

c)

It is the money you make when winning the lottery

d)

It is what you earn when you save or what you pay if you borrow

4.

Which one of these is a criminal offence

a)

Not doing what your teacher asks you to do

b)

Trying to use tax laws to reduce what you pay in tax

c)

Trying to evade legislation which governs tax

d)

Not paying tax from your Saturday job

5.

Which of these are examples of tax avoidance (select all correct answers please!)

a)

Paying the decorator in cash for doing up your house

b)

Saving money in an ISA (Independent Savings Account)

c)

Not declaring all your earnings to the HMRC

d)

Paying lower tax offshore (in another country)

6.

Which of these are examples of tax evasion (select all correct answers please!)

a)

Paying the decorator in cash for doing up your house

b)

Saving money in an ISA (Independent Savings Account)

c)

Not declaring all your earnings to the HMRC

d)

Paying lower tax offshore (in another country)

7.

What is Compound Interest

a)

It is what what a Bank charges you when you save money with them and keep your savings and interest with them year after year

b)

It is what what a Bank charges you when you borrow money from them and and do not pay them back

c)

It is what what a Bank pays you when you save money with them and keep your savings and interest with them year after year

d)

It is what what a Bank pays you when you make payments using a debit card

8.

What are tax free earnings

a)

It is the allowance of your salary which is not taxed

b)

It is savings been paid net of interest

c)

It is the amount large companies keep in tax havens

d)

It is the amount earned after the basic tax is deducted

9.

What does HMRC stand for

a)

Higher Main Revenue Contribution

b)

His Masters Revenue and Customs

c)

Her Majesty's Revenue and Customs

d)

Her Ministers Revenue and Customs

10.

If the Employee Personal Allowance is £11,850 per year and the Basic tax rate up to £34,500 is 20% which of these is correct (you have 60 seconds to answer!)

a)

An annual salary of £11,500 will have tax of £1,150 per year

b)

An annual salary of £32,850 will have tax of £4,200 per year

c)

An annual salary of £31,850 will have tax of £4,200 per year

d)

An annual salary of £15,350 will have no tax in a year

11.

What is progressive taxation

a)

Penalties for paying tax late

b)

Decreasing tax rates for higher earners

c)

Tax rates which deduct more tax as you earn more money

d)

Tax rates which deduct more tax as you earn less money

12.

What is Tax we pay used for (select all correct answers)

a)

Overseas Aid to poorer countries

b)

To build roads and bridges and other projects

c)

To help collect rubbish and pay for police and other services

d)

To pay the teachers very small salary

13.

What would be the best place to save £100

a)

The Bank of England

b)

In a Bank giving 2% interest a year compounded

c)

In a Bank giving tax free savings

d)

At the Post Office in a zero interest account

14.

What is a surcharge on something you buy

a)

Extra money you get paid for saving with a bank

b)

Extra money you have to pay for something because of special conditions

c)

Discount which you have to pay for buying extra

d)

It is VAT

15.

What is National Insurance

a)

It is a tax system paid by the Government for funding state benefits

b)

It is a private insurance policy for Healthcare

c)

It is another form of sales tax like VAT

d)

It is a tax system paid by workers and employers for funding state benefits like the NHS