Working out tax

[Neil]

Can someone tell me how the tax is worked out as its thrown me , I pay class 4 N.I and paying 40% tax bracket.

I thought it was :

Total money received / invoiced for the year

Minus tax relief which I think is 10k

Minus expenses

Then what ever is left over that what tax you have left to pay?

Sent from my iPhone using Tapatalk

 

[SolarPanelCleaning]

More or less. There's thresholds though. Don't forget pensions n isa's too. And capital expenditure! Putting value on your business can be offset.

 

[Neil]

Is this tax calculator right do you think ? It doesn't give you the option for putting in expenses but I can roughly work it out if this is how it's worked out.http://www.listentotaxman.com/m/

Sent from my iPhone using Tapatalk

 

[SolarPanelCleaning]

Yes seems right to me. Deducut all your business expenditure ( running costs, insurance, resin, advertising etc) and that then is your taxable income.

Gets tricky if you have any other business or partnerships.

You can carry a loss over from a previous year too!

I've only been self employed since 2009, so learning more every year.