uk tax quiz

UK Taxes Quiz: How Much Do You Know About Them?

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Are You Tax Savvy or Due for a Crash Course?

From PAYE to VAT, income thresholds to council tax bands — the UK tax system affects nearly everyone, but how well do you actually understand it? This UK tax quiz tests your knowledge of real tax rules, rates, and loopholes that impact your paycheck and spending.

These UK tax quiz questions are designed to challenge your financial IQ — whether you’re a budgeting beginner or a spreadsheet wizard. Let’s find out: do you know your HMRC facts or are you guessing your way through tax season?

✅ Take the quiz — answers hidden under collapsible boxes:

1. What does PAYE stand for?

Pay As You Earn

2. What is the current (2024/25) UK Personal Allowance — the amount of income you can earn before paying income tax?

£12,570

3. At what income does the 40% Higher Rate tax band start in England?

£50,271

4. Which of these is NOT a direct tax?
A. Income tax
B. Capital gains tax
C. Value Added Tax (VAT)

C. Value Added Tax (VAT) — it’s an indirect tax

5. What is the standard rate of VAT in the UK?

20%

6. If you’re self-employed, what form must you file each year to declare your earnings?

Self Assessment Tax Return (SA100)

7. What tax is paid when a home is inherited above a certain value threshold?

Inheritance Tax

8. How much National Insurance do employees pay on earnings between £12,570 and £50,270 (2024–25)?

8%

9. True or False: Scotland and Wales have the exact same income tax bands as England.

False – Scotland has its own tax bands, and Wales can vary them

10. What is a P60?

A year-end summary of your pay and taxes from your employer

11. What type of tax is added to petrol, cigarettes, and alcohol?

Excise Duty

12. What is the name of the tax you pay when you buy property over a certain threshold?

Stamp Duty Land Tax (SDLT)

13. What is the Capital Gains Tax allowance for individuals in 2024/25?

£3,000

14. What is the main difference between income tax and National Insurance contributions?

Income tax funds public services; NICs go toward pensions and benefits

15. Which form shows how much tax you paid when leaving a job?

P45

16. If you earn over £100,000, what happens to your personal allowance?

It is reduced by £1 for every £2 over £100,000

17. Which of the following income sources is tax-free?
A. Lottery winnings
B. Rent from property
C. Dividends over £1,000

A. Lottery winnings

18. What is the name of the annual tax charged by local councils to households?

Council Tax

19. What’s the deadline for filing online Self Assessment tax returns for the previous tax year?

31st January

20. What is the UK Corporation Tax rate as of 2024/25 for most companies?

25% for profits over £250,000

21. What is Gift Aid?

A tax relief scheme for donations to UK charities

22. If you make less than £1,000 a year from side hustles, do you need to pay income tax?

No – it falls under the Trading Allowance

23. What is the Marriage Allowance?

A tax benefit where a lower-earning spouse can transfer part of their personal allowance

24. What’s the maximum annual ISA allowance for adults in 2024/25?

£20,000

25. Who collects taxes in the UK?

HM Revenue & Customs (HMRC)

🧠 Scorecard – Are You a Tax Novice or a Number Ninja?

💰 22–25 correct: The Chancellor Would Be Impressed
You clearly read the fine print on your payslip and probably help your friends with their returns.

💸 16–21 correct: Smart Saver Status
You’ve got a solid handle on taxes — just a few more facts and you’ll be ready for Question Time.

📊 10–15 correct: Budgeting Beginner
You know the basics, but might be overpaying or under-claiming. Time to explore gov.uk a bit more.

📉 0–9 correct: Tax Code Chaos
Don’t worry — so do most people. Start with the basics, and remember: HMRC will send reminders.

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