Clarification for tax calculator details

gilbutre

Hi everyone,

Just used this tax calculator and not sure to understand every detail. Here are my results:

Self-Employment Profit £ 12,000.00
Taxable income £ 2,000.00
Tax £ 400.00
Class 2 NICs £ 143.00
Class 4 NICs £ 363.96
Take Home £ 11,093.04

Where do Tax, Class 2 NICs , Class 4 NICs values come from, and more importantly, why do I pay only £100 and then some of tax when these values imply much more?

Pennywise

gilbutre wrote: »

Where do Tax, Class 2 NICs , Class 4 NICs values come from, and more importantly, why do I pay only £100 and then some of tax when these values imply much more?

there's a link on that page which explains how the figures are worked out

http://www.employedandselfemployed.co.uk/details

booksurr

https://www.gov.uk/government/publications/tax-and-tax-credit-rates-and-thresholds-for-2014-15/tax-and-tax-credit-rates-and-thresholds-for-2014-15

income tax
the first 10,000 is tax free personal allowance so 12 - 10 = 2,000 taxable income
2,000 x 20% = 400 income tax

NI
Class 4
the first 7956 is tax free , 12,000 - 7956 = 4044
4044 x 9% = 363.96

class 2
flat rate £2.75 per week
2.75 x 52 = £143

gilbutre

Makes sense now, thanks!