Personal Finance - Core Maths (Mathematical Studies)

Match the following definitions

• Quarter

• Income before deductions

• Per annum

• 4 month period

• Gross Income

• Income after deductions

• Net Income

• Yearly

Which of these are possible 'deductions' from your gross salary?

• Student loans

• Income Tax

• Bank loan repayments

• National Insurance

Pension contributions are taken from your gross pay ​ (a)   other deductions are calculated.

• before
• after

The salary advertised on a job advert is the ​ (a)   . Before you are paid, ​ (b)   will be taken from your pay. The amount will depend on how much money you earn, if you have a student loan and if you pay into a pension. The final salary that is paid into your account is your ​ (c)   .

• gross salary
• deductions
• net pay

What does PAYE stand for?

Answer explanation

PAYE stands for Pay As You Earn. It is a system of taxation used in the United Kingdom and other countries, where employers deduct income tax and National Insurance contributions from employees' wages before paying them.

If you are working, you will have National Insurance deducted from your pay.

• Sometimes true

• Always true

• Never true

A 'personal allowance' for income tax is

• The amount of money someone pays in tax

• The amount of money paid into National Insurance

• The amount of tax-free income a person gets

James earns £4 375 per month. How much income tax will he pay in the year? Use the income tax table, the personal allowance for the year is £12,500.

• £9,000

• £5,000

• £21,000

• £16,000

Jemma earns £99,000 per year. How much income tax does she pay? The personal allowance is £12,500.

• £17,300

• £34,600

• £19,600

• £32,100

Clara earns £49,000 per year. How much national insurance does she pay?

• £4,740

• £980

• £4,880