Test Your Tax Trivia
As the new tax year begins, have you brushed up on the new rates and thresholds introduced this financial year? Put your knowledge – and memory – to the test.
- 1.
How much has the tax-free allowance increased by for the next year (2014-15) for people born after 5 April 1948?
- A.
£590
- B.
£560
- C.
£520
Correct Answer
B. £560Explanation
In 2013/14 the allowance was £9,440 but it has now been increased to £10,000Rate this question:
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- 2.
Marie earns £50,000 a year, on what slice of her income does she pay 40% income tax?
- A.
£8,135
- B.
£8,120
- C.
£8,240
Correct Answer
A. £8,135Explanation
The personal allowance for 2014-15 is £10,000. Therefore Marie’s taxable income equals £40,000. According to the 2014/15 rates £31,865 of Marie’s income will be taxed at 20% so that leaves £8,135 taxed at 40%.Rate this question:
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- 3.
What is the latest date a paper tax return can reach HMRC?
- A.
31 December at midnight
- B.
31 January at midnight
- C.
31 October at midnight
Correct Answer
C. 31 October at midnightExplanation
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.Rate this question:
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- 4.
What is the latest date an online tax return can reach HMRC?
- A.
31 January at midnight
- B.
31 October at midnight
- C.
31 December at midnight
Correct Answer
A. 31 January at midnightExplanation
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.Rate this question:
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- 5.
Vashil is a self-employed accountant and makes an annual profit of £28,450. How much National Insurance does he pay?
- A.
£2.75 a week
- B.
£2.75 a week and 9% of profits between £7,956 and £41,865
- C.
£2.75 a week 9% of profits between £7,956 and £41,865 and 2% over that amount
Correct Answer
B. £2.75 a week and 9% of profits between £7,956 and £41,865Explanation
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.Rate this question:
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- 6.
James files his tax return on 1 February, what penalty does he incur?
- A.
Imprisonment
- B.
5% of the tax due
- C.
£100
Correct Answer
C. £100Explanation
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.Rate this question:
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- 7.
Natalia’s tax code is 117L, what does this mean?
- A.
She is entitled to the basic Personal Allowance and £1,170 must be taken away from her total taxable income
- B.
She is entitled to the full Personal Allowance and £1.17 must be taken away from her total taxable income
- C.
She is entitled to the basic Personal Allowance and £117 must be taken away from her total taxable income
Correct Answer
A. She is entitled to the basic Personal Allowance and £1,170 must be taken away from her total taxable incomeExplanation
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.Rate this question:
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- 8.
Which tax generates the most revenue for the UK government each year?
- A.
Income tax
- B.
Value added tax
- C.
Corporation tax
Correct Answer
A. Income taxExplanation
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.Rate this question:
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- 9.
When does the tax year for individual taxpayers run between?
- A.
1 April to 31 March
- B.
6 April to 5 April
- C.
3 April to 2 March
Correct Answer
B. 6 April to 5 AprilExplanation
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.Rate this question:
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- 10.
When does the tax year for corporations run between?
- A.
6 April to 2 March
- B.
3 April to 2 March
- C.
1 April to 31 March
Correct Answer
C. 1 April to 31 MarchExplanation
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.Rate this question:
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Mar 21, 2023Quiz Edited by
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Mar 26, 2014Quiz Created by
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