Questions

Section $1$

A$)$ Answer the following questions and present your calculations.

$1\mathrm{.}1-$ Ben used to earn $40,000$ and paid $6,000$ in income tax. He has recently received a substantial pay rise and now earns $95,000.$ His revised income tax is $28,500.$

Select which of the following options correctly defines the principle on which this tax system is based.

A Progressive taxation

B Regressive taxation

$1\mathrm{.}1$ B $-$ Select which of the following options correctly classifies value added tax.

A Direct tax

B Indirect tax

$1\mathrm{.}2-$ Sue and John have been working as solicitors in partnership for many years, trading as Quash & Co$.$ They have no employees. Their turnover is approximately $50,000$ pa and they have adjusted trading profits of $32,500.$

Which two of the following taxes must Sue and John pay to HMRC$?$

A Corporation Tax

B Income tax