Test 12 — Life in the UK Test Practice
About Test 12 (Official 3rd Edition Handbook)
Test 12 is a free 24-question practice test for British citizenship naturalisation and Indefinite Leave to Remain (ILR / settlement) applicants in the United Kingdom. Every question is written directly from the official Home Office handbook, Life in the UK: A Guide for New Residents (3rd Edition), covering British values, UK history, society, and government. To pass the official Life in the UK Test (booking fee £50 at gov.uk), candidates must answer at least 18 out of 24 multiple-choice questions correctly (75% pass mark) within 45 minutes.
Life in the UK Test 12

What is the system by which the income tax is automatically taken from the employee’s income by their employer and paid directly to HM Revenue & Customs (HMRC)?
Correct Answer: "Pay As You Earn" (PAYE)
The system by which income tax is automatically deducted from an employee's wages is called "Pay As You Earn" (PAYE).
Under this system, the employer calculates and deducts the correct amount of tax from the employee's pay and sends it directly to HM Revenue & Customs (HMRC). Self-employed people use the self-assessment system instead.