Easy rule to work out Tax on Self Employment?

skellington

This is probably a stupid question, but I am just seeing if there is a quick rule of thumb to work out what i'd pay in Tax, after the end of the Tax year?
Whether there was an online calculator etc?

Roughly I have Self Employed income in the last year of around £23,000, and expenses (so far) of around £5000

I do need to make a larger purchase for new equipment, which would make sense to do now (of around £6000) but can I work out, what roughly I'd pay in tax before this purchase, and ideally afterwards?

I guess its just to see what I could offset against any future Tax bill?

Thank you (sorry I am new to this!)

[Deleted User]

Without the claim for equipment, the tax would be 1086 (18000 - 12570 @20%) and the NIC 758.70(18000-9570 @9%). The 6000 purchase, assuming that it qualifies for AIA will normally reduce your tax by £1200 and your Class 4 NIC by £540.

However with your example your taxable profit including the equipment deduction is 12000 which is below the personal allowance of £12570 - no tax to pay.You may wish to restrict your claim on the equipment to 5430 and carry 570 forward upon which to claim capital allowances. The downside is that you would pay an extra £51.30 in NIC - 270.00 instead of 218.70

Personally I would claim the whole £6000 to avoid the hassle of the carry forward but that’s not really tax saving🤔