Test Your Tax Trivia

The tax year for corporations runs from 1 April to 31 March. This is the standard financial year for corporations in many countries, including the United Kingdom. The tax year is aligned with the calendar year, making it easier for businesses to calculate and report their annual income and expenses for tax purposes. By having a consistent tax year, it allows for better comparison and analysis of financial data across different companies and industries.

The tax year for individual taxpayers runs from 6 April to 5 April. This is based on the UK tax year, which begins on 6 April and ends on 5 April of the following year. This specific period is chosen because it aligns with the start of the financial year and allows for a consistent and standardized timeframe for tax calculations and reporting.

James incurs a penalty of £100 for filing his tax return on 1 February. This penalty is likely for filing the tax return after the deadline or late submission.

The latest date an online tax return can reach HMRC is 31 January at midnight. This is the deadline for submitting self-assessment tax returns in the UK. It is important to submit the tax return by this date to avoid any penalties or late filing fees.

The tax code 117L indicates that Natalia is entitled to the basic Personal Allowance, which means she can earn a certain amount of income without paying any tax. In this case, £1,170 must be deducted from her total taxable income before calculating her tax liability.

The correct answer is 31 October at midnight. This is the latest date that a paper tax return can reach HMRC. After this date, paper tax returns will not be accepted. It is important to submit the tax return before the deadline to avoid any penalties or late fees.

In 2013/14 the allowance was £9,440 but it has now been increased to £10,000

Vashil pays £2.75 a week for National Insurance. In addition to that, he also pays 9% of his profits between £7,956 and £41,865. This means that he pays 9% of the portion of his profit that falls within this income range.

Income tax generates the most revenue for the UK government each year. This is because income tax is a tax imposed on individuals and businesses based on their income or profits. As the UK has a progressive income tax system, higher earners pay a higher percentage of their income in taxes. This allows the government to generate a significant amount of revenue from income tax, making it the largest source of tax revenue in the country.

For the UK tax year 2024/2025:

The personal allowance (tax-free income) is £12,570.

The basic rate (20%) applies up to £37,700 of taxable income (after allowance).

Income above £50,270 is taxed at 40%.

Marie’s taxable income = £50,000 - £12,570 = £37,430, which is below the higher-rate threshold, so she does not pay 40% tax on any of her income.

If the question assumes the higher-rate threshold starts at £35,000 (older rates), then:

Income above £35,000 would be taxed at 40%, so £50,000 - £35,000 = £15,000 taxed at 40%.