How to work out Tax /NI bill

NannaH

For this current tax year 2022-23. 
£900 JSA April-June.
Earned £12750 July-Sept via PAYE
and then an amount from self employment, say £9000 Oct/March minus £7000 business expenses. 

Can anyone tell me what my Tax and NI bill will be on self employed earnings?   

I assume it’s not as simple as 32.5% of £2000?   

If not then how is it worked out?

Edited to say, currently paying £200 a ‘week’ in tax/ni for contract work via umbrella company, it’s for 9 ‘weeks’ (4 on 4 off) . 

If taxable income is £15k for the year then way too much tax will have been paid for contract work,  so actually a rebate will be due on self assessment?   

molerat

There will be no NI due on a SE profit of £2K

With a total income of £15650 ( £900 + £12750 + £2000) tax due is £616 so you need to find out exactly how much tax you are paying through the umbrella.

Dazed_and_C0nfused

NannaH said:

For this current tax year 2022-23. 
£900 JSA April-June.
Earned £12750 July-Sept via PAYE
and then an amount from self employment, say £9000 Oct/March minus £7000 business expenses. 

Can anyone tell me what my Tax and NI bill will be on self employed earnings?   

I assume it’s not as simple as 32.5% of £2000?   

If not then how is it worked out?

Edited to say, currently paying £200 a ‘week’ in tax/ni for contract work via umbrella company, it’s for 9 ‘weeks’ (4 on 4 off) . 

If taxable income is £15k for the year then way too much tax will have been paid for contract work,  so actually a rebate will be due on self assessment?   

It's quite likely you will have paid too much tax on PAYE so the refund due will just be reduced to account for the tax due on the self employment (£400 unless you are Scottish resident for tax purposes).

All of which forms part of your Self Assessment tax calculation.

NannaH

Just managed to log in to Gov gateway acc.   It’s estimating employment income as £58500 so there must be an element of higher rate tax being paid.   You would think the agency would have told hmrc that it’s a temporary 3 month contract,  or aren’t they that sophisticated?  

Weekly Payslips from the umbrella are as clear as mud,  last 4 have been £975, £1488 £1066 and £1110 net.  All from £1417 taxable pay (after fees and employers NI) .   It’s all very odd, going to have to ask them for an explanation. 

Dazed_and_C0nfused

NannaH said:

Just managed to log in to Gov gateway acc.   It’s estimating employment income as £58500 so there must be an element of higher rate tax being paid.   You would think the agency would have told hmrc that it’s a temporary 3 month contract,  or aren’t they that sophisticated?  

Weekly Payslips from the umbrella are as clear as mud,  last 4 have been £975, £1488 £1066 and £1110 net.  All from £1417 taxable pay (after fees and employers NI) .   It’s all very odd, going to have to ask them for an explanation. 

Employers are meant to report the facts relating to payments made, not what might happen at some point in the future.