Payments on Account and Income Tax Calculators

David333

Two questions. I'm self-employed but have been offered a PAYE job. According to my rough spreadsheet, I will owe over £1000 tax over the tax year but will have paid a significant chunk of it through PAYE. My question is whether payments on accounts will apply to me or not? HMRC say that they apply unless 'the amount of tax you owed last year was less than £1,000' or 'last year you paid more than 80% of the tax you owed outside of Self Assessment'. The 80% might apply, but I'm not sure. Does 'the amount of tax you owed last year' mean the total amount owed over the course of the year or the amount of tax owed after completing a self-assessment?

Secondly, is there an online calculator that calculates income tax with differing values each month? Some of my self-employment income will go through PAYE, but that will differ each month.

uknick

Are you going to be self employed under the CIS?  If not, how will your self employment income go through a PAYE system?

Regarding your payment on account question, if your are referring to the HMRC words here; 

Understand your Self Assessment tax bill: Payments on account - GOV.UK

the phrase "last year" refers to the tax year you have just completed the self assessment for, currently 2024-25. 

With regard to when a POA is due my understanding is that the 80% rule applies to your total tax liability for the year you have done your self assessment.  For example, if your total liability was £10,000 and you paid £9,000 through PAYE and declared £1,000 through self assessment you wouldn't have to pay a POA.

 

abushohag

There are various tools available online which you can use to get some ideas on tax to pay https://taxscouts.com/calculator/employed-self-employed-tax/
Also some short courses on the self assesment can be useful https://www.osbornetraining.org/course/total-taxation-training/

uknick

Or, you could use HMRC's own free webinars/courses.

HMRC email updates, videos and webinars for Self Assessment - GOV.UK

SVaz

https://www.nutmeg.com/self-employed-tax-calculator

It only shows yearly totals for self employment and PAYE but should work as a guesstimate.

It will all come out in the wash eventually.

As you say, if 80% of tax due is via PAYE,  you should be able to request your SE tax comes out that way too, if that’s what you want. 

You shouldn’t be liable for Payments on account.