Given that Megan's tax rates were as follows:
<span>No tax one the first £11000 of earnings </span><span>Earnings in excess of £11000 and up to £43000 taxed at a rate of 20% </span><span>Earning in excess of 43000 and up to £150000 taxed at a rate of 40% </span>Earnings over £150000 taxed at a rate of 45% If Megan earned £158900 before tax last year, the amount of tax she paid in total is given as follows: First <span>£11000 = </span><span>£0 tax </span>Balance after first <span>£11000 = </span><span>£158900 - </span><span>£11000 = </span><span>£147900 </span> Next (<span>£43000 - </span><span>£11000 = </span><span>£32000) = 20% of </span><span>£32000 = 0.2 x </span><span>£32000 = </span>£6400 tax Balance after next <span>£32000 = </span><span>£147900 - </span><span>£32000 = </span><span><span>£115000</span> </span>
Next (<span>£150000 - </span><span>£43000 = </span><span>£107000) = 40% of </span><span>£107000 = 0.4 x </span><span>£107000 = </span><span>£42800 tax</span> Balance after next <span>£107000 = </span><span>£115000 - </span><span>£107000 = </span><span>£8000</span>
Remaiming <span>£8000 = 45% of </span><span>£8000 = 0.45 x </span><span>£8000 = </span><span>£3600 tax</span>
Total tax = <span>£6400 + </span><span>£42800 + </span><span>£3600 = </span><span>£52800
Therefore, she paid a total of </span><span>£52800 in tax last year.</span>