Tax Rates

DebtHater

I'm self employed, if I look at my earnings and take off my Personal Allowance of £6,475, what percentage will I be looking at with regards to how much tax I need to pay, and whats the tax bandings?

Had a look on HMRC site but it got slightly confusing

And also, can anyone confirm how much NIC is per week?

Thankyou! :j

jem16

First £6475 tax free.

Next £37,400 at 20%

Above that at 40%

Don't know about NIC for self-employed.

Money_Grabber13579

Self employed with be looking at Class 2 and 4 NI. Class 2 is £2.40 a week, Class 4 is 8% between 5715 and 43875, and 1% above that.

DebtHater

Money_Grabber13579 wrote: »

Self employed with be looking at Class 2 and 4 NI. Class 2 is £2.40 a week, Class 4 is 8% between 5715 and 43875, and 1% above that.

Thanks for the replies

So for the NIC, will I pay class 2 or 4, or both?

fengirl_2

You pay both.

DebtHater

Thanks for the help guys

Mudd14

jem16 wrote: »

First £6475 tax free.

Next £37,400 at 20%

Above that at 40%

Don't know about NIC for self-employed.

Just to correct, first 6479 is tax free.

DebtHater

jimmo wrote: »

Where does that come from?
Its £6475.

It is indeed £6475 as seen here: http://www.hmrc.gov.uk/rates/it.htm

Money_Grabber13579

Actually, on the PAYE scheme, the 6479 is correct! It's because on the tax code, the last digit is dropped, and then the system actually allows the figure to be "9" when the tax is calculated. Just an odd quirk, and only £4!

Money_Grabber13579

jimmo wrote: »

Quite right but the OP is self-employed so PAYE doesn't come into it.

Just mentioned it, since it came up earlier on!:D

John_Pierpoint

The class 4 NIC is just another tax you get charged when you complete your self assessment tax form (or better do it on-line).