Tax Help needed (new to forum)

simon2008

Hi i need a little help with my tax return this year, as its my first one i have ever done, im not sure how much tax im expected to pay, im just trying to find a rough idea, i have i work part time and have my own business, so i have used the free £5000, and i have earned roughly £8000 from my business, am i right in thinking i will be paying roughly £1800 in tax? if anyone can help or let me know a tax calculaor i would really appreciate it

thanks simon

mrkbrrws

Yes, £1,800 looks about right to me.

Tax is 20% of total income over £6,035 and NICs are 8% of self-employed profits over £5,435.

Bear in mind that payments on account for 2009/10 will also be due, so roughly £2,700 payable January 2010 and £900 in July 2010.

LynneL_3

The government have a very useful site called direct.gov.uk which has all sorts of information including tax and NIC. The allowances and tax rates can be found here http://www.hmrc.gov.uk/rates/it.htm and NIC can be found here http://www.hmrc.gov.uk/rates/nic.htm. Don't forget about the two types of self employed NIC - class 2 and 4.
When it comes round to filling in your tax return after 5 April you can do it on line at the HM Revenue & Customs website and it will calculate everything for you.
You also need to tell HMRC about a new self employment within three months of starting it.