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self employed tax calculation
debt.b.gone
Posts: 233 Forumite
in Cutting tax
Hi looking for some help in working out how much tax i will pay on a net profit of £27000 for the year 08/09
trying to get myself sorted for january before the bill arrives.....last year net profit was £12000 and 1st & 2nd payment on accounts were £1011.
any help would be fab....even a pointer as to how i work it out maybe?
:-)
trying to get myself sorted for january before the bill arrives.....last year net profit was £12000 and 1st & 2nd payment on accounts were £1011.
any help would be fab....even a pointer as to how i work it out maybe?
:-)
0
Comments
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You calculate tax thus:
Profit 27,000 less personal allowance 6045 = 20955 @ 20% (you work it out)
NIC: 27,000 less exempt 5235 (? check on HMRC website) = xx @ 8%.
Add the two together, deduct your payment on account and the balance is the tax due.£705,000 raised by client groups in the past 18 mths :beer:0 -
The above is fine as long as you have no other income. In addition:
The balancing payment will be the answer arrived at less the payments on account made. This is due 31/01/10.
Your will also have to make payments on account which will be the same as the 2008-09 tax liability with half due on 31/01/10 and the other half due on 31/07/10.
I must say that with a profit of £27k it would probably pay to appoint an accountant who would do these calculations for you as well as ensuring you are claiming all legitimate expenses and keeping you up to date with the constant changes to the tax system.0
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