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Unit 1b Earnings – How Age & Employment Might Affect Earnings – Financial Literacy GCSE

Financial GCSE is an extremely easy subject to gain an A* compared to other subjects. Just three papers, all multiple choice. This article will help you pass and gain an A* in Financial Literacy by telling you literally EVERYTHING you will need to know to for absolute success in this subject.

Firstly, Financial Literacy contains some questions which are extremely obvious. TheFse questions are so easy, anyone would know the answer. Therefore, I will try to leave out the content you will know already so you only have to revise and learn the content you don’t know.

Unit 1b – Earnings

Let’s start with basics, Earnings is the money you get for doing a job. Now, with earnings, only certain type of people in different age groups can earn:

  • Under 13 – People under 13 cannot work unless they are actors. 
  • 13 – 15 – They can work but they must not work before 7am or after 7pm,work more than 2 hours on a school day or for more than 12 hours a week in a term.
  • 16-17 can work but for no more than 8 hours a day or 40 hours a week.
  • Over 18 have many rules but the main rule is they cannot be told to work more than 48 hours a week, but they can if they choose to do so.

There are two types of working:

  • Full time – Where the worker works all day, all week, all year round only taking days off for paid holidays.
  • Part time – Where workers only work ‘part time’ or for only a part of the employees working day, week or year.

Income Tax

This is collected from people’s earnings to pay for services such as the NHS, police force etc..
There is a tax band used to calculate how much money that person can get taxed:

  • Up to £5,225 there is no tax
  • £5,225 to £7,455 there is 10% tax
  • £7,455 to £39,825 there is 22% tax
  • Over £39,825 there is 40% tax

National Insurance

The government use this money to pay for pensions, benefits, unemployment and so on. For National Insurance, there is a different band:
  • Up to £100 there is 0% NICs (National Insurance Contributions)
  • £100 to £670 there is 11% NICs
  • £670 + there is 1% NICs

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