How much tax will I pay?

[tigwig]

I have just done my short tax return (I am a childminder). My profit for the year was only £8862, does anyone have any idea how much tax I will owe on this? Also I have being paying the NI contributions too, would I be classed as a low earner and get some back or not?

[factor-fiction]

There are several sites on the web that do these calculations.
e.g. http://www.ir35calc.c...&uds=Basic&Host=LOCAL

[tigwig]

thankyou, is this for employed people? I forgot to say I am self employed.

[buildersmate]

With employed, your income is what your employer pays you.
With self-employed your 'income' is what you receive from your work less allowable expenses associated with your employment. I assume you have deducted your expenses in calcualting the £8862 figure?

[twix123]

In addition to buildersmate's reply, you will be assessed on you overall income, less self employment expenses, reduced by any tax already paid. You will also be charged 8% Class 4 National Insurance, assuming that you have already paid the basic Class 1 contributions.

[tamborine]

40% tax on profits but I recall (can't find evidence) Conservative Gov offering tax free on profits less that £5k ?

[buildersmate]

40%? - come off it! - not everyone is on higher rate tax.

[buildersmate]

...... or does that include the NI bits?

[tamborine]

self employed rates BM

[tigwig]

The £8862 is my profit after expenses yes and I have paid NI contributions but do not know whether these are class 1 or 4? Just been sent a bill every quarter and pay it!

[Skyline D]

No idea what country tambourine is living in but frankly answers that are just blatantly nonsense aren't helpful.

Tigwig, your tax will be 20% of your profits (£1,772) and 8% Class 4 NIC on profits above £5,715 (another £252). So just over £2k in total. The quarterly NIC you've already paid is Class 2 and irrelevant to this. You don't pay Class 1, only employed people do.

[tamborine]

googled but am happy to hear different; will check with IR

http://www.google.co....cial&client=firefox-a

Practical Self Employed UK Tax Tips
Being Self Employed in the UK carries with it responsibility to sort out your ... With tax rates of up to 40%, tax is an essential area to achieve a degree of ... Many Inland Revenue enquiries result in a higher tax liability due to the ...
savingsfriend.co.uk/.../practical_self_employ
ed_uk_tax_tips.htm
- Cached - Similar

[maclarencat]

Tamborine the key wording is UP TO 40%

[tamborine]

thanx mac....where are the rates applicable?

I was quoted 40% for SE & IR never question payments nor give rebates.

[ummmm]

Sometimes Tambo you need to move away from the keyboard...!!

[ummmm]

I was a book-keeper....also done tax returns. Given...not for many years now....but gosh...you really talk sh!te.

[LoftyLottie]

Skyline D is correct.