Correct answer: B — This system that deducts tax automatically is called ‘Pay As You Earn’, also known as PAYE.
Why this question matters
This question is drawn from the “The UK Government, the Law and Your Role” section of the official Home Office handbook. Topics from this chapter make up a significant portion of the 24 questions in the real exam, so being able to answer this one comfortably is a small but real step towards passing on the day.
The accepted answer is B: “PAYE”. Memorise the underlying fact rather than the option letter — the order of options changes between attempts, and the real exam may rephrase the question.
More questions from this chapter
- In 1833 a law abolished slavery throughout the British Empire.
- Members of the public are allowed in Youth Courts
- A driving licence held by a driver over 70 should be renewed ______
- How many countries are members of the European Union?
- The members of the House of Lords, known as peers, are elected by the people.
Keep practising
- Take a full practice test on Government & Law.
- Re-read the study notes for this chapter.
- Sit a 24-question timed mock.
- Browse the full question library.