Marginal tax rates 2014-15: the winners and losers

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 2014-15?

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

  3. If a self-employed person with profits of GBP110,000 for the year ended 5 April 2015 spends GBP2,000 on computer equipment during the year, what is the effective net (after tax) cost of the equipment?

  4. If a person submits their self-assessment tax return for 2014-15 on 15 September 2015, by what date must a gift aid donation be paid if it is to be effective for that year?

  5. If an employed person receives a pay rise of GBP3,000 for 2014-15, when will this impact upon their tax credits award?

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

  7. What is the maximum amount of effective tax relief that a person subject to the claw back of tax credits can obtain for a contribution into a personal pension scheme?

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

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

  10. Which one of the following statements is true?