Chapter V Test 4 — Life in the UK Test Practice
About Chapter V Test 4 (Official 3rd Edition Handbook)
Chapter V Test 4 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 Chapter V Test 4

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)
PAYE (Pay As You Earn) is the system by which income tax and National Insurance are automatically deducted from employees' wages by their employer.
The employer sends the deducted amount directly to HMRC.