Working out tax

Discussion in 'Chit Chat & Introductions' started by Neil, Mar 30, 2015.

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  1. Neil

    Neil Grand Master
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    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?



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  2. 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.
     
  3. Neil

    Neil Grand Master
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    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/


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  4. 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.
     
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