Numeracy Intermediate November 2024 Unit 1 Q8
8. Jamal is paid in dollars.
The income tax rates are as follows:
| Band | Taxable income | Tax rate |
|---|---|---|
| Personal allowance | Up to 10 000 dollars | 0% |
| Basic rate | 10 000 dollars to 30 000 dollars | 10% |
| Higher rate | Over 30 000 dollars | 25% |
Jamal’s total earnings before tax are 36 000 dollars.
Calculate how much tax Jamal is due to pay in total.
You must show all your working. [6]
| Scheme | Marks | Comments |
|---|---|---|
| Appropriate sight of (30 000 – 10 000 =) 20 000 (dollars) or (36 000 – 30 000 =) 6000 (dollars) | B1 | Ignore £ or other currency for dollars May be implied in further working |
| (Tax at 10%) 0.10 × (30 000 – 10 000) or 0.10 × 20 000 or equivalent | M1 | FT use of 'their (30 000 – 10 000)' from an error in subtraction |
| 2000 (dollars) | A1 | CAO |
| (Tax at 25%) 0.25 × 6000 or or 0.25 × (36 000 – 30 000) or equivalent | M1 | FT use of ‘their (36 000 – 30 000)’ from an error in subtraction |
| 1500 (dollars) | A1 | CAO |
| (Total tax due) 3500 (dollars) | B1 | ISW FT ‘their 2000’ + 'their 1500' provided both M1 marks previously awarded |