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hammer [34]
3 years ago
7

Megan is checking her tax bill for the last year.

Mathematics
1 answer:
Tanya [424]3 years ago
8 0
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>
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