This accounting problem is solved step by step below, with detailed explanations to help you understand the method and arrive at the correct answer.
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Answer
\pounds7,440
Here's how to calculate the total tax Carys paid:
Step 1: Calculate tax for the 0% band. The first £11,000 of earnings are not taxed.
Step 2: Calculate tax for the 20% band. This band applies to earnings in excess of £11,000 up to £43,000. The amount in this band is .
Step 3: Calculate tax for the 40% band. This band applies to earnings in excess of £43,000 up to £150,000. Carys's total earnings are £45,600. The portion of her earnings that falls into this band is:
Step 4: Calculate tax for the 45% band. Carys's earnings (£45,600) do not exceed £150,000, so no tax is paid in this band.
Step 5: Calculate the total tax paid. Add the tax from each band: Carys paid a total of £7,440 in tax.
The final answer is .
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Here's how to calculate the total tax Carys paid: Step 1: Calculate tax for the 0% band.
This accounting problem is solved step by step below, with detailed explanations to help you understand the method and arrive at the correct answer.