Technology2 mins ago
How do I estimate my tax?
7 Answers
Good Morning, I have recently registered self employed and although I know there is probably a number I can ring I am sick and tired of sitting on hold on 0844 numbers!
I just need a ball park figure of how much I should save each month to pay my tax bill.
I earn approx £680 pm and get Child and working Tax credit of £130 a week [although I don't think that that is taken into account].
I am paying my NI contribution direct debit so thats sorted but I have just completed my first month and need to put some away.
It has been suggested that a save 20% of all I earn ,I know that will be over the top but at least I would be covered.
Lisa x
I just need a ball park figure of how much I should save each month to pay my tax bill.
I earn approx £680 pm and get Child and working Tax credit of £130 a week [although I don't think that that is taken into account].
I am paying my NI contribution direct debit so thats sorted but I have just completed my first month and need to put some away.
It has been suggested that a save 20% of all I earn ,I know that will be over the top but at least I would be covered.
Lisa x
Answers
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My husband is self employed but paid under the construction scheme which means that 20% of his earnings are deducted each week & paid to the tax man. This means that we can guarantee a rebate once we've done the tax return each year, so yes I would definately say put aside 20%. That way you should have more than enough to pay the bill when it's due
Don't know how accurate this is, but here's a website that might help http://www.selfemploymentcalculator.com/
You earn £680 per month and also receive £565 per month in so-called tax credits.
My understanding of a 'credit' is a balancing payment of a proportion of an initial amount.
As a basic rate tax payer your monthly tax liability would be £0.92 and nat ins of £5.68.
As self employed on those figures you appear not to have to put anything aside.
Tax Credits........................Sounds like a handout to me.....
My understanding of a 'credit' is a balancing payment of a proportion of an initial amount.
As a basic rate tax payer your monthly tax liability would be £0.92 and nat ins of £5.68.
As self employed on those figures you appear not to have to put anything aside.
Tax Credits........................Sounds like a handout to me.....
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