Marginal tax rates in 2015-16 (UK Finance Act 2015)

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What is the highest effective rate of income tax for 2015-16?

50%

62%

60%

52%

If a person submits their self-assessment tax return for 2015-16 on 15 September 2016, by what date must a gift aid donation be paid if it is to be effective for that year?

31 January 2017

15 September 2016

5 April 2016

31 October 2016

What is the maximum amount of effective tax relief, which a person subject to the claw back of tax credits, can obtain if they make a gross personal pension contribution during 2015-16?

81%

129%

109%

122%

Which one of the following statements is true?

High marginal rates of tax only apply to high levels of income, but advance planning can mitigate the effects

High marginal rates of tax only apply to high levels of income, but retrospective planning can mitigate the effects

High marginal rates of tax can apply to quite low levels of income, but retrospective planning can mitigate the effects

High marginal rates of tax can apply where income is quite low, but advance planning can mitigate the effects

What can a self-employed person do to avoid having to register for VAT?

Pay a gift aid donation to charity

Make a contribution into a personal pension scheme

Take additional holiday

Nothing

In what situation can the effective marginal tax rate on additional income be more than 100% as a result of a self-employed person having to register for VAT?

When they can pass on the cost of VAT registration to customers

When they cannot pass on the cost of VAT registration to customers

In all circumstances

Never

What is currently the highest effective marginal rate of tax as a result of tax credits being clawed back?

47%

73%

83%

41%

If an employed person receives a pay rise of £3,000 for 2015-16, when will this impact upon their tax credits award?

2015-16

2014-15

2016-17

Never

Which people can reduce the impact of the personal allowance trap by making a contribution into a personal pension scheme?

The self-employed

Employees, directors and the self-employed

Employees and directors

Employees

If a self-employed person with profits of £110,000 for the year ended 5 April 2016 spends £2,000 on computer equipment during the year, what is the effective net (after tax) cost of the equipment?

£2,000

£800

£1,240

£760

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Marginal tax rates in 2015-16 (UK Finance Act 2015)

What is the highest effective rate of income tax for 2015-16?

If a person submits their self-assessment tax return for 2015-16 on 15 September 2016, by what date must a gift aid donation be paid if it is to be effective for that year?

What is the maximum amount of effective tax relief, which a person subject to the claw back of tax credits, can obtain if they make a gross personal pension contribution during 2015-16?

Which one of the following statements is true?

What can a self-employed person do to avoid having to register for VAT?

In what situation can the effective marginal tax rate on additional income be more than 100% as a result of a self-employed person having to register for VAT?

What is currently the highest effective marginal rate of tax as a result of tax credits being clawed back?

If an employed person receives a pay rise of £3,000 for 2015-16, when will this impact upon their tax credits award?

Which people can reduce the impact of the personal allowance trap by making a contribution into a personal pension scheme?

If a self-employed person with profits of £110,000 for the year ended 5 April 2016 spends £2,000 on computer equipment during the year, what is the effective net (after tax) cost of the equipment?

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CPD article

Marginal tax rates in 2015-16 (UK Finance Act 2015)

What is the highest effective rate of income tax for 2015-16?

If a person submits their self-assessment tax return for 2015-16 on 15 September 2016, by what date must a gift aid donation be paid if it is to be effective for that year?

What is the maximum amount of effective tax relief, which a person subject to the claw back of tax credits, can obtain if they make a gross personal pension contribution during 2015-16?

Which one of the following statements is true?

What can a self-employed person do to avoid having to register for VAT?

In what situation can the effective marginal tax rate on additional income be more than 100% as a result of a self-employed person having to register for VAT?

What is currently the highest effective marginal rate of tax as a result of tax credits being clawed back?

If an employed person receives a pay rise of £3,000 for 2015-16, when will this impact upon their tax credits award?

Which people can reduce the impact of the personal allowance trap by making a contribution into a personal pension scheme?

If a self-employed person with profits of £110,000 for the year ended 5 April 2016 spends £2,000 on computer equipment during the year, what is the effective net (after tax) cost of the equipment?

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