JCHL Financial Maths 5: Income Tax

You’ll learn

• Know the words: the standard rate, the higher rate, the standard-rate cut-off point and a tax credit. The actual rates change from year to year, so read them off the question
• Work out somebody's gross tax — the income up to the cut-off at the standard rate, plus anything above it at the higher rate
• Take the tax credit off the gross tax to get the tax actually paid, then find the net income (gross income − tax paid)