TAF - Unit 2 Topic 9.1

Why do you think businesses have to pay tax?

• To contribute to public services

• To increase their profits

• To avoid legal issues

• To support government policies

How do you think businesses pay tax?

• By paying a percentage of their profits

• By paying a fixed amount annually

• By paying based on their revenue

• By paying based on the number of employees

What impact do you think paying tax has on a business?

• It reduces the business's profit.

• It increases the business's expenses.

• It has no impact on the business.

• It improves the business's reputation.

Spending taxpayers’ money on the police benefits businesses by:

• Increasing security and reducing crime

• Raising taxes for businesses

• Decreasing public trust in law enforcement

• Diverting funds from other public services

What is the current personal allowance?

• £12,570

• £10,000

• £15,000

• £20,000

What are the current income tax rates?

• 10%, 12%, 22%, 24%, 32%, 35%, 37%

• 5%, 10%, 15%, 20%, 25%, 30%, 35%

• 8%, 12%, 20%, 25%, 30%, 35%, 40%

• 10%, 15%, 20%, 25%, 30%, 35%, 40%

What are the current income tax bands?

• Basic rate: 20%

• Higher rate: 40%

• Additional rate: 45%

• None of the above

Find out the current primary contribution threshold, upper earnings limit and secondary contribution threshold on www.gov.uk.

• Primary contribution threshold: £9,568, Upper earnings limit: £50,270, Secondary contribution threshold: £8,840

• Primary contribution threshold: £9,500, Upper earnings limit: £50,000, Secondary contribution threshold: £8,788

• Primary contribution threshold: £9,568, Upper earnings limit: £50,000, Secondary contribution threshold: £8,788

• Primary contribution threshold: £9,500, Upper earnings limit: £50,270, Secondary contribution threshold: £8,840

Using the tax rates and tax bands for the current tax year, calculate the NICs due for an employee earning £750 per week.

• £50

• £60

• £70

• £80

Using the tax rates and tax bands for the current tax year, calculate the NICs due for: 1. an employee earning £750 per week. 2. an employee earning £1,200 per week. Show your working.

• £50 and £100

• £60 and £120

• £70 and £140

• £80 and £160