We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Clarification for tax calculator details
Options

gilbutre
Posts: 453 Forumite


in Cutting tax
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?
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?
0
Comments
-
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/details0 -
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 = £1430 -
Makes sense now, thanks!0
This discussion has been closed.
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 350.9K Banking & Borrowing
- 253.1K Reduce Debt & Boost Income
- 453.5K Spending & Discounts
- 243.9K Work, Benefits & Business
- 598.8K Mortgages, Homes & Bills
- 176.9K Life & Family
- 257.2K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards