Unit 2 Topic 8 #valleyifs @ Kahoot Pay and tax Unit 2 Topic 8 #valleyifs @ Kahoot

Pay and tax No. Question A B C Ans 1 What age do you have to be to start paying National Insurance? 16 18 21 2 When should a self-employed person’s self-assessment form be completed by? January 31 July 31 October 31 3 What type of national insurance do employees pay? Class 1 Class 2 Class 4 4 A form P45 is given to each employee by their employer at the end of the tax year. It is an official document that shows the final tax code. True False 5 If your tax code was 1100L, how much would you earn before paying tax? £1100 £11,000 £11,500 6 What percentage do additional-rate taxpayers pay tax on savings income? 20% 40% 45% 7 What are the main three types of income? [3] 8 List the three income tax bands and their percentages [3] 9 What is name of the system that employees are taxed under and what does it involve? [2] 10 What is meant by the term ‘personal allowance’? [3]

Answers No. Question A B C 1 What age do you have to be to start paying National Insurance? 16 18 21 2 When should a self-employed person’s self-assessment form be completed by? January 31 July 31 October 31 3 What type of national insurance do employees pay? Class 1 Class 2 Class 4 4 A form P45 is given to each employee by their employer at the end of the tax year. It is an official document that shows the final tax code. True False 5 If your tax code was 1100L, how much would you earn before paying tax? £1,100 £11,000 £11,500 6 What percentage do additional-rate taxpayers pay tax on savings income? 20% 40% 45% 7 What are the main three types of income? [3] Marks awarded for any three correct points Earned Savings Investment Rental 8 List the three income tax bands and their percentages [3] Marks awarded for correct tax band name and percentage Basic rate = 20% [1] Higher rate = 40% [1] Additional rate = 45% [1] 9 What is name of the system that employees are taxed under and what does it involve? [2] Marks awarded for correct system name and description Pay as you earn or PAYE [1] The employer must deduct the right amount of income tax from the employee’s pay and send it to HMRC each time the employee is paid [1] 10 What is meant by the term ‘personal allowance’? [3] Marks awarded for three correct points every individual is allowed to receive a certain amount of income before they have to pay tax [1] There is a standard allowance that applies to most people [1] Some people have a different personal allowance because of their circumstances [1] Answers

Task Go to the IFS website and take a look at the topic test for topic 8 to further revision the main points. Make revision materials. 10 minutes

Benefits in kind HMRC Net Income P45 P60 Turnover Key Terms for Topic 8 Benefits in kind HMRC Net Income P45 P60 Turnover On your whiteboards or books, write down a definitions for these key terms. EXT: Can you give examples of each? 5 minutes CLICK FOR TIMER

Answers Net income – what we have left after income tax and NI have been deducted; what we have available to spend. P60 – the form all employees receive at the end of the tax year, telling them how much they were paid and how much tax was deducted. Benefits in kind – certain benefits, given to an employee by an employer, which are treated as income. P45 – the form that employees receive when they change jobs. It states how much they earned and how much tax they paid in their last job. Turnover – in business terms, total income for the tax year. HMRC – Her Majesty’s Revenue & Customs.

GCSE IFS Finance – Unit 2 Topic 8 Search for #valleyifs GCSE IFS Finance – Unit 2 Topic 8