With all the hubbub about the top tax rate over the last few weeks, it has become painfully clear how many people totally misunderstand the income tax system!
Here is a worksheet I have pulled out of my Fiscal Policy SOW. I tend to do the top section as an example, from right to left with slowly fading support. There are also some questions at the bottom if they need it.
It's also a useful opportunity to check their rounding - Average Alfie's tax rate as a % of his pay is 11.96-ish%, and some of my students weren't totally confident rounding that to 12.0% to 1dp.
Income tax calculations
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