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3 - Income and tax

Total questions: 22

Worksheet time: 11mins

Name
Class
Date
1.

Income is...

a)

money received

b)

money paid

c)

as a result of work

d)

on a regular basis

e)

occasionally

2.

Salary is paid...

a)

Weekly, fixed

b)

Weekly, variable

c)

Monthly, fixed

d)

Monthly, variable

3.

Wages are paid...

a)

Weekly, fixed

b)

Weekly, variable

c)

Monthly, fixed

d)

Monthly, variable

4.

Employers must pay the National Minimum Wage, published by the government.

a)

Yes

b)

Yes, but there are some exepmtions

c)

No

d)

It is not legally binding

5.

Pay before any deductions is known as...

a)

Cumulative Pay

b)

Total Pay

c)

Gross Pay

d)

Net Pay

6.

Pay after any deductions such as tax, national insurance & pension is known as...

a)

Cumulative Pay

b)

Total Pay

c)

Gross Pay

d)

Net Pay

7.

Your tax code determines how much tax you pay.

a)

True

b)

False

8.

Income remaining after deduction of taxes and other essential spending, available to be spent or saved as one wishes is known as...

a)

Discardable Income

b)

Disposable Income

c)

Development Income

d)

Deductable Income

9.

A tax levied on profit from the sale of property or an investment.

a)

Council Tax

b)

Stamp Duty

c)

Inheritance Tax

d)

Capital Gains Tax

e)

Corporation Tax

10.

Paid when a person's estate is worth more than £325,000 when they die - exemptions for passing on property.

a)

Council Tax

b)

Stamp Duty

c)

Inheritance Tax

d)

Capital Gains Tax

e)

Corporation Tax

11.

A tax levied on companies' profits.

a)

Council Tax

b)

Stamp Duty

c)

Inheritance Tax

d)

Capital Gains Tax

e)

Corporation Tax

12.

The tax placed on legal documents usually in the transfer of assets or property.

a)

Council Tax

b)

Stamp Duty

c)

Inheritance Tax

d)

Capital Gains Tax

e)

Corporation Tax

13.

A tax levied on households by local authorities in Britain, based on the estimated value of a property and the number of people living in it.

a)

Council Tax

b)

Stamp Duty

c)

Inheritance Tax

d)

Capital Gains Tax

e)

Corporation Tax

14.

The tax applied at the point of sale of goods and services in the UK is known as...

a)

Income Tax

b)

Sales Tax

c)

Value Added Tax

d)

Purchasing Tax

15.

VAT is charged on most good and services we buy at a standard rate of:

a)

5%

b)

10%

c)

17.5%

d)

20%

16.

Standard rate income tax is:

a)

10%

b)

20%

c)

40%

d)

45%

17.

Higher rate income tax is:

a)

10%

b)

20%

c)

40%

d)

45%

18.

Additional rate income tax is:

a)

10%

b)

20%

c)

40%

d)

45%

19.

Margaret is a part time worker earning below the income tax threshold of £12,570. How much tax will she pay?

a)

0%

b)

10%

c)

20%

d)

40%

20.

The tax free allowance is £12,570. George earns £20,000 per year. How much of his income will be subject to tax?

a)

£7,430

b)

£12,570

c)

£20,000

d)

£0

21.

A low paid part time worker is most likely to be concerned with...

a)

An increase in the tax free allowance

b)

An increase in the basic rate of tax

c)

An increase in the higher rate of tax

d)

A decrease in the additional rate of tax

22.

A highly paid executive is most likely to be concerned with...

a)

An increase in the tax free allowance

b)

An increase in the basic rate of tax

c)

An increase in the higher rate of tax

d)

A decrease in the additional rate of tax