New Income Tax Checker

antrobus

Mrs_Arcanum wrote: »

Are the NI contributions going up for 2016/17? Seems to show me paying more than I do currently by just under £7.

The big change for 2016/17 is the end of contracted out NIC.

Do you work in the public sector by any chance? Most public sector pension schemes were contracted out and, as a result, most public sector workers will now pay higher NICs. The same applies to private sector workers as well, of course, if they were in defined benefit CO scheme.

jenkers

good evening all , i am looking for some advice and always find the best place to come is here , i filed my 2014/15 self assessment formrecently and have now been told i owe around £2300 in unpaid tax , this is because i went over a certain threshold before the end of the tax year and i basically wasnt paying enough tax , i had absolutely no idea of this until the letter arrived today . what confuses me is i have always been employed and find it so frustrating that my Employer does not pick up on things like this , is this totally down to me to know or should my employer pick it up , they now want me to pay this straight away and i simply dont have it so they have asked me to do an exoenditure disclosure, would they also look at my partners income , we are not married , the one thing i would really like is for someone to go nack over the years and check my taxes i have paid , who do you approach to do something like this because i am absolutely useless with taxation , is it an accountant or would it be a financial adviser or something along them lines as i am sure i have paid to much over the years . PLEASE,SOMEONE POINT ME IN THE RIGHT DIRECTION

polymaff

jenkers wrote: »

good evening all , i am looking for some advice and always find the best place to come is here , i filed my 2014/15 self assessment formrecently and have now been told i owe around £2300 in unpaid tax , this is because i went over a certain threshold before the end of the tax year and i basically wasnt paying enough tax , i had absolutely no idea of this until the letter arrived today . what confuses me is i have always been employed and find it so frustrating that my Employer does not pick up on things like this , is this totally down to me to know or should my employer pick it up , they now want me to pay this straight away and i simply dont have it so they have asked me to do an exoenditure disclosure, would they also look at my partners income , we are not married , the one thing i would really like is for someone to go nack over the years and check my taxes i have paid , who do you approach to do something like this because i am absolutely useless with taxation , is it an accountant or would it be a financial adviser or something along them lines as i am sure i have paid to much over the years . PLEASE,SOMEONE POINT ME IN THE RIGHT DIRECTION

The person you are looking for is an accountant - but, even if you get one it is YOU who are ultimately responsible for your income tax affairs.

On the other hand you could start by publishing here a copy of your SA302 for 2014/15.

kurbads

Hi, why does it say, NI is 9% but when you put 10K over threshold e.g. £18164 in the calculator, it says £1200 in NI as if it was 12%? Where does the number come from?
P.S. Sorry, I get it, it is 12%. I can't remember now where did I get 9% from!

xylophone

https://www.litrg.org.uk/tax-guides/employed/what-national-insurance-do-i-pay-employee

https://www.gov.uk/national-insurance/how-much-you-pay

jonon

I might be mistaken, but shouldn't the addition of a monthly pension contribution (SIPP) lower your National insurance payment due to your taxable pot being smaller? I'm self - employed

Basically do pension contributions as Self-Employed (sole trader) reduce your national insurance payment?

00ec25

jonon wrote: »

I might be mistaken, but shouldn't the addition of a monthly pension contribution (SIPP) lower your National insurance payment due to your taxable pot being smaller? I'm self - employed

Basically do pension contributions as Self-Employed (sole trader) reduce your national insurance payment?

no

neither the income tax nor the NI you pay are costs against your business so neither reduce the size of your taxable profit upon which each is calculated.

a pension contribution reduces your income tax liability, not your business profit.

jonon

00ec25 wrote: »

no

neither the income tax nor the NI you pay are costs against your business so neither reduce the size of your taxable profit upon which each is calculated.

a pension contribution reduces your income tax liability, not your business profit.

Sorry I'm a little confused. As a sole trader aren't "income tax liability" and "Business profit" the same thing?

Is it a case that if you're employed you can "salary sacrifice" and reduce your NI bill? Is there an alternative for Self employed (sole trader) with a pension?

00ec25

jonon wrote: »

Sorry I'm a little confused. As a sole trader aren't "income tax liability" and "Business profit" the same thing?

a self employed person has a) business income and b) business expenses: a) - b) = taxable profit. The amount of tax due on that profit can be called the tax "liability" since that is the figure you are liable to pay on your profits

the expenses must be "allowable" expenses incurred in the trading activity of the business. The tax you need to pay (tax liability) is not itself such an expense as it relates wholly to what you drew out of the business, ie it is your personal income, not a cost of doing business.

As a sole trader any money you personally take out of the business is not a business expense, it is personal (pre tax) income (aka "drawings") so it will be added back into the equation to restate the overall taxable profit that determines how much tax you are liable to pay

this is rather basic stuff, do you not have an accountant who explained this to you?

https://www.gov.uk/expenses-if-youre-self-employed

jonon

Cool thanks.

Is it a case that if you're employed you can "salary sacrifice" and reduce your NI bill? Is there an alternative for Self employed (sole trader) with a pension?