A taxpayer in a particular country currently pays tax on their gross income as:-

• Taxable income is income above the tax-free personal allowance of £11500

• The first £33 500 of taxable income is taxed at 20%

• Any remaining taxable income up to £150 000 is taxed at 40%

• Any remaining taxable income is taxed at 45%

In this country the workforce is summarised as:-

Using the data above estimate how much income tax the government will receive. Estimate also the total income tax as a percentage of total salary.You must explain all your working clearly using correct language, grammar and notation.

Salary Range (E). Number (millions)