Simon is a make-up artist. He earns €874 ⋅ 30 per week. He pays income tax at the standard rate of 21% up to the standard rate cut-off point of €650, and then pays income tax at the rate of 44% on the remainder of his weekly pay. He has a tax credit of € x per week.
Simon also has a car loan of €45 per week and pays his local property tax at €9 ⋅ 50 per week. Both payments are deducted from his net wages at the end of each week. His net pay at the end of each week is €650 ⋅ 11. Calculate the value of the following:
(i) Simon’s gross pay (ii) the gross tax due on Simon’s wages each week (iii) the value of his tax credit.
Solution (i)
(ii)
(iii)
1 +
Invisible Maths! Recall that a minus sign outside a bracket means that the bracket is multiplied by .