Self Employed Tax ... levels/rates

[max99]

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Could someone if possible break it down into simple terms, For someone self employed what percentage do they page on money earned this year up to lets say 30k profit.

i.e first £5???k 0% , next £2_ _ _ k pays _ _ % etc

Had look on the tax website and still cant really make ends of it


Thanks In Advance
Max

[Mogga]

Ring them and ask if you don't understand or have a look at:


Income Tax : Directgov - Money, tax and benefits

[DioBach]

Ring them and ask if you don't understand or have a look at:


Income Tax : Directgov - Money, tax and benefits

It would be handy to have a calculator - put in earnings for the month, get a figure for the tax on that amount sort of thing.

[The Ferryman]

taxcalcselfemployednew

[ian-d]

PAYE Tax Calculator / Net salary Calculator :: Freelance UK

Might be worth dropping Keith (hrbs) a PM as i'm not sure, there has been too many changes recently!

Think its something along the lines of you have an tax free entitlement of £5,435 then anything above this is taxed at 20%, but am unsure if the 20% ruling came into play 07/08, or 08/09.

On NI you pay class 2 at a flat rate of £2.20 weekly and also class 4 at eight per cent on annual taxable profits between £5,225 and £34,840 and one per cent on any taxable profit over that amount.

[DioBach]

PAYE Tax Calculator / Net salary Calculator :: Freelance UK

That's the sort of thing I was after. Cheers!

[The Ferryman]

Careful not use that PAYE one if you are self employed, though, use the one I posted above if you are self employed (which was what was originally asked for )

Bruce

[Keith]

taxcalcselfemployednew

This is excellent thanks Bruce

[Grounded Vertigo]

I second that thanks from Keith, the table is really useful Bruce although I'm not too keen on the figures it's telling me I'm going to be paying when the next tax year arrives...

[IntroSites]

i use Free UK PAYE Tax calculator 2008. Updated for 2007 / 2008 budget. and like it

[max99]

taxcalcselfemployednew

Perfect

Cheers

I will be paying more than I thought, shame

btw anyone know anyway i could possibly offset some profit against uni somehow (wishful thinking I know) ha, or maybe students get different rates...doubt it tho

[fizzbird]

Perfect

or maybe students get different rates...doubt it tho

Nice idea Max. You are right to doubt it though.

You could include some expenses saying they were for your business - such as books and magazines (research); a percentage of heating and lighting, stationery, postage; some mileage, etc.

[gopher]

I was taking a look at the taxwise table and unfortunately it only goes to 100k. Is 35% about the maximum, or does it increase between 100k and 500k as well?

[The Ferryman]

gopher

It is 41% on everything over about £34,000 ish, that is 40% Higher Rate Tax and 1% Class 4 NI Contributions.

If you work out what you have above £100,000, work out the tax and NI on it and add it to the information you have already, you will be able to calculate back as a percentage of overall income, if that is the information you need.

Regards

Bruce

[gopher]

Ah ok, that matches what my accountant told me. Bummer, got excited there for a minute.

Thanks