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hectic | 17:58 Mon 09th Jan 2006 | Business & Finance
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Could anyone tell me what the answer is please. A salary of �15,897 is to be increased by 4%. What will the new salary be per month with a tax allowance of �8,800 before being taxed and a tax rate of 10%?

Many Thanks


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Have you got a calculator handy?

Multiply 15 897 by 1.04 (this adds 4% on to the salary). Call this A.

Take 8 800 off A to get the amount to be taxed. Call this B.

Multiply B by 0.10 (this is the 10% tax rate, and the answer is the tax you will pay). Call this C.

Take C from A to get your annual salary after tax, then divide this by 12 to get your monthly salary.

I hope you don't need to pay National Insurance, as this would need another set of calculations.

Is this an exam question or for real? If it's for real then your 10% tax rate is wrong and the allowance figure is unlikely but not impossible.

If it's an exam then gnu has it right.

Question Author
Its not an exam question it is my real wage, tax rate and tax allowance. I live on an island so a things are a lot better than the uk

Dear Hectic, now I have a return question for you ......

Please can I move to your Island and qualify for the same type of benefits? ...(please do not say yes if its in the middle of the North Sea .... ) lol

Question Author
Its the isle of man, you'd have to ask their government but i don't see a problem with it

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