How Do You Work Out Your Tax And Insurance?

How much Tax and National Insurance Contributions do I pay I want to work out the percentage for this year?

  • Am wondering if someone earned as self-employed and employed lets say in total £15,000 a year from self-employed and £22000 a year on an employed job how much would they have left in a year and how much Taxable Income and National Insurance Contributions would they pay so I can work it out for this year?

  • Answer:

    Add the 2 Gross salaries together Subtract £7475 as this is your personal allowance you pay 20% tax on the remainder N.I. is different My husband is self employed and pays the same N.I. every month,it is not dependant on earnings where it is for Employed earnings See the HMRC website for details, or get a session with an accountant what you pay him/her will be well worth it as he/she can detail what you can claim as Business expenses

William L at Yahoo! Answers Visit the source

Was this solution helpful to you?

Other answers

There is a calculator on direct.gov.uk. Self Employed gets complex with types of NI contributions and expenses.

Petrusclavus

Based on those figures you will liable to tax at the basic rate. That means that your self employed profits will be taxed at 20%. Your profits are your income (say £17,000) less any expenses you incur earning that money. If you do this at home, you can claim a small amount for using electricity at home - say £3 per week unless you want to keep very accurate records and apportion the costs to get an exact amount. If you have a dedicated study that you only use for business you could claim a bit more. You would be best to engage an accountant to help you start up and deal with your first year. Once you get the hang of it you can do it yourself. There is plenty of guidance available online. You will also pay 2 types of NIC. Class 4 NIC is based on your profits and you pay 9% on your earnings over £7225 (£7665 from April). This is added to your tax bill and you pay it with the tax. There is also Class 2 NIC which is a flat rate £2.50 per week (£2.65 from April). So, as well as your normal tax and NIC on your salary you will pay:- Tax £3400 NIC4 £879 NIC2 £130

BD

Related Q & A:

Just Added Q & A:

Find solution

For every problem there is a solution! Proved by Solucija.

  • Got an issue and looking for advice?

  • Ask Solucija to search every corner of the Web for help.

  • Get workable solutions and helpful tips in a moment.

Just ask Solucija about an issue you face and immediately get a list of ready solutions, answers and tips from other Internet users. We always provide the most suitable and complete answer to your question at the top, along with a few good alternatives below.