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

In order to be awarded CPD units you must answer the following five random questions correctly. If you fail the test, please re-read the article before attempting the questions again.

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

  2. 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?

  3. 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?

  4. Which one of the following statements is true?

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

  6. 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?

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

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

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

  10. 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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