6. Provided is the Tax Credit Certifi cate for Hazel Nutte.
(i) Copy the tax credit certifi cate provided and fi ll in the missing information.
(ii) Based on the information, what is Hazel’s net pay:
(a) per month (b) per fortnight (c) per week?
(iii) Copy the table below and place a tick (✓) in the correct box on each line to show the eff ect of each event on Hazel’s net pay in a year.
Tax Credit Certifi cate for Hazel Nutte
Personal tax credit Travel tax credit Total tax credit
Gross income
Amount of income taxable at 21%
Gross tax due Net tax due
Net income for the year
Weekly pay will increase
The rate of gross tax is changed from 21% to 23% The tax credit is changed from €1 750 to €1 650 The travel allowance is changed from €700 to €785
The tax rate increases for people who earn more than €40 000 per year
7. A person has a gross income of €35 000 for the year. He pays tax on his gross pay at 20%. (i) What is the gross tax due on his salary each year? (ii) Copy and complete the table below.
(iii) Copy and complete the graph below to show the amount of gross income tax at 20% for every gross income up to €40 000 per year. Show all your workings out. The amount of income tax at 20% is shown for gross incomes up to €10 000.
(iv) Callum earns a gross income of €27 500 per year.
From the graph you have drawn, calculate the gross tax Callum must pay.
(v) Using any valid mathematical method, calculate 20% of €27 500.
(vi) Are your answers for part (iii) and part (iv) the same? (vii) Give a reason why they might be slightly diff erent.
(viii) Does the graph or the calculation give the most accurate answer? Justify your answer.
Gross income earned (€)
8 000 7 000 6 000 5 000
4 000 3 000 2 000 1 000
No eff ect on pay
For the year January 2021 to December 2022 €1 750 €700 A