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maths income tax questions

When you earn money you pay income tax. The amount you pay depends on how much you earn that year.
You pay
0% on the first £12500 you earn
20% on the next £37500 you earn
40% on the next £112 500 you earn.
One year, Kim paid £9260 income tax.
Work out how much she earned that year.
We know that income tax = 9260
Step 1 is to find out which tax bracket Kim comes under.
The min. tax for those in the 20% bracket is 7,500. (20% * 37,500)
The min. salary for those in the 40% bracket is 45,000. (40% * 112,500)

As Kim pays 9260 in tax, we know that she falls under the 20% bracket. As such, we can conclude that :

20% * (Kim's Salary) = 9260
Kim's Salary = 9260/20%(or 0.2)
Kim's salary = 46,300
Why does the mark scheme say it’s £54400?
Original post by stacierussell
Why does the mark scheme say it’s £54400?

1. Because she pays no tax on the first £12500

2. She then pays 20% on the next £37500 - I assume you can calculate 20% of 37500 (If the answer is less than 9260 she must earn some amount above the 12500+37500 threshold)

3. Finally she pays 40% on any earnings above 12500+37500. The amount of additional tax paid at 40% being the difference between the tax she actually paid and the amount due in 2 above. You now know enough to add up her total earnings.
(edited 1 year ago)

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