Charlotte is paid £64000 each month. She lives in England and pays Income Tax at the rates shown below: pay nothing on the first £12570 of your wage, pay 20% on the part of your wage that is above £12570 and up to and including £50270 , pay 40% on the part of your wage that is above £50270 and up to and including £125140 . Find the amount of Income Tax taken from Charlotte's pay each month.

Question

Charlotte is paid £64000 each month. She lives in England and pays Income Tax at the rates shown below: pay nothing on the first £12570 of your wage, pay 20% on the part of your wage that is above £12570 and up to and including £50270 , pay 40% on the part of your wage that is above £50270 and up to and including £125140 . Find the amount of Income Tax taken from Charlotte's pay each month.

Answer 1

The total amount of Income Tax taken from Charlotte's monthly pay is £1,301.67.

Answer 2

This is a problem of progressive tax calculation. First, it should be noted that Charlotte's monthly salary is £64000.According to the UK's income tax progressive standards, the following calculations should be carried out stratified:1. The tax payable on the initial £12570 of the wage is 0,2. The portion of the wage above £12570 and up to £50270 is taxable at a rate of 20%. Since Charlotte's monthly pay of £64000 exceeds £50270, she would pay 20% tax on (£50270 - £12570).3. The portion of the wage over £50270 up to £125140 is subject to 40% tax. Since Charlotte's monthly pay of £64000 falls into this range, she would pay 40% tax on (£64000 - £50270).By dividing the result by 12, we have the monthly tax Charlotte needs to pay.

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