Carys is checking her tax bill for the last year.The tax rates were as follows:No tax of the first £11 000 of earnings.Earnings in excess of £11 000 and up to £43 000 taxed at a rate of 20%.Earnings in excess of £43 000 and up to £150 000 taxed at a rate of 40%.Earnings over £150 000 taxed at a rate of 45%.Last year Carys earned £45 600 before tax.How much tax did she pay in total?Show your working.I am having a lot of trouble finding the answer to this. I looked it up on this website hoping I could find how to solve it but unfortunately that didn't happen. Can anyone help ?!!! Anxious to know!!!!!
Accepted Solution
A:
Answer:£7,440Step-by-step explanation:We have been given the tax rates as follows:$0-$11,000 = No tax.$11,000-$43,000 = 20%.$43,000-$150,000 = 40%.Earnings over $150,000 = 45%.Since last year Carys earned $45,600, so we will have to find the tax paid by her for 11,000-43,000 at rate of 20%, then the tax for amount over 43,000 at the rate of 40%Therefore, Carys paid an amount of $7,440 in tax.