A self-employed landscape gardener has an annual income of £42,000 and pays income tax equal to 12% of this income. During the year, the gardener spends £3,600, including VAT at 20%, on standard-rated goods for personal use.
Calculate the total income tax and VAT paid as a percentage of the gardener's annual income. Give your answer to 1 decimal place.
75 exam-style questions on AQA GCSE Economics 2.1 Introduction to the national economy, covering 2.1.1a What an interest rate is, 2.1.1b Interest rates and consumer decisions, 2.1.1c Interest rates, producer decisions and calculations, 2.1.2a UK government revenue and spending, and 2.1.2b Direct, indirect and progressive taxation. Each one has a worked solution and a mark scheme showing where the marks go.