Answer: Kevin needs to pay £15400 more in income tax than George.
Step-by-step explanation:
To calculate how much more income tax Kevin needs to pay than George,
we can follow these steps:
1. Determine the tax band for each individual based on their salaries:
- George falls under the Basic Rate tax band as his salary of £45000 falls between £13000.01 to £50000.
- Kevin falls under the Higher Rate tax band as his salary of £61000 falls between £50000.01 to £150000.
2. Calculate the tax amount each individual needs to pay:
- For George: - Taxable Income: £45000 - Basic Rate Tax: 20%
- Tax Amount = £45000 * 0.20 = £9000
- For Kevin: - Taxable Income: £61000 - Higher Rate Tax: 40%
- Tax Amount = £61000 * 0.40 = £24400
3. Find the difference in the tax amounts:
- Difference = Tax amount paid by Kevin - Tax amount paid by George
- Difference = £24400 - £9000 = £15400
Therefore, Kevin needs to pay £15400 more in income tax than George.
