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Sage & Time Ltd 'is a small financial consulting company with about 100 employees scattered across the UK, all working from home. Table 1 shows informthe ation on pay and tax for selected employees of the company living in Scotland and in England.
Employee
Residence
Gross pay (£)
Pay after income tax and National Insurance (£)
Average total tax rate (%)
Sally
England
63,500
Karim
Scotland
43,836.49
30.97
Maria
31,600
25,150.16
20.41
Thor
Jamie
20,300
17,466.16
13.96
Liz
17,487.13
13.86
1.3 Liz's line manager has agreed that Liz's net pay will increase to £18,560 three years later (in 2024/25). Over these three years, inflation is predicted to average 2% per year. Using the Inflation calculator, select and report the relevant result from your calculation to help you explain whether in 2024/25 Liz is likely to enjoy a standard of living that is higher, lower or the same as today.
Based on an inflation rate of 2% per year, in 3 years time, the estimated value of 19,000 savings in today's term might be 17,904.12. However, please take note that the price of goods could fall anytime
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