Self employed - calculating tax

Markwrd1

Hi,

My partner is currently in her second year of being self employed.

She started in April 2012 and a few months ago received her tax bill from HMRC as per accountants calculations etc. she has paid that full year of tax and the first payment on account for this year. She decided that she was going to put 25% of everything she earned into an ISA so that she always has enough to pay her tax bill. The left over money would act as a form of savings for a holiday etc. we never actually realised that she would pay staggered 6 monthly payments for part years, we always thought she would work a year and get a bill, work a year and get a bill and so on. We now find it rather confusing to actually work out what money is spare and what money is for the tax bill due to these staggered payments. Can anyone recommend a spreadsheet that is available to work this out or a method of how this can be done. It doesn't help that this is so new to us and with a child on the way we don't want to spend what we may need to pay the tax with. Thanks in advance, mark

uknick

You might get a better response asking for this to be moved to the cutting tax section.

There may be a spreadsheet on the internet, but I'd be surprised as each person's tax will situation be different, i.e. what expenses and type of income etc..

If you want to make you have enough cash to pay the tax, why not set aside 20% of all income, assuming basic rate taxpayer. That way you should have more than enough set aside when the time comes.

But, I see you say you have an accountant. What are you paying them for?