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{standard}% => $\\frac{\\var{standard}}{100}$

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{higher}% => $\\frac{\\var{higher}}{100}$

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Calculate the gross income tax for the week first as follows:

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Calculate the standard cut-off point amount first by $\\frac{\\var{standard}}{100} \\times \\var{cut}$

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Then, the income tax at the higher rate by $\\frac{\\var{higher}}{100} \\times (\\var{wage} - \\var{cut})$

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Finally, add them to get the gross income tax

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$(\\frac{\\var{standard}}{100} \\times \\var{cut}) + (\\frac{\\var{higher}}{100} \\times (\\var{wage} - \\var{cut}))$

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Using the gross income tax calculated in above

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Subtract the tax credit, $\\var{credit}$, giving the amount of income tax paid.

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$(\\frac{\\var{standard}}{100} \\times \\var{cut}) + (\\frac{\\var{higher}}{100} \\times (\\var{wage} - \\var{cut})) - \\var{credit} = \\var{ans}$

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Look at this website for worked examples:

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how to work out my tax

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Calculate the amount of income tax he pays each week.

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€[[0]]

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$\\var{name}$ pays tax at $\\var{standard}$% on the first $\\var{cut}$ of his money, so you need to find $\\var{standard}$% of $\\var{cut}$.

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He pays tax at $\\var{higher}$% on everything above $\\var{cut}$, so you need to find out how much he earns above the cut off $\\var{cut}$ and get $\\var{higher}$% of that.

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Add the two tax bills together to find the gross tax that $\\var{name}$ owes.

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Subtract his tax credits from this.

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The result is the net tax that he has to pay.

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$\\var{name}$ has a weekly wage of €$\\var{wage}$. His standard cut-off point is €$\\var{cut}$, and his tax credit is €$\\var{credit}$ per week. The standard rate of income tax is $\\var{standard}$% and the higher rate is $\\var{higher}$%.

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Net Tax

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rebelmaths

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