Tax Calculation & class 4NIC
ACServices
Registered Posts: 7 Regular contributor ⭐
Hi,
Am I right in saying that on a basic tax calculation for self assessment if someone earned a profit of circa £8.9k
they would pay tax and class 4 of circa £450 this is for the yr 2011/12
or would this be more/less due to them earning paye gross of £3.9k and paid tax of 330 before becoming self employed.
All class 2 is paid.
Thanks for the assistance.
Regards
Andy
Am I right in saying that on a basic tax calculation for self assessment if someone earned a profit of circa £8.9k
they would pay tax and class 4 of circa £450 this is for the yr 2011/12
or would this be more/less due to them earning paye gross of £3.9k and paid tax of 330 before becoming self employed.
All class 2 is paid.
Thanks for the assistance.
Regards
Andy
0
Comments
-
A bit confused with your question? Can you explain a little?0
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ACServices wrote: »Hi,
Am I right in saying that on a basic tax calculation for self assessment if someone earned a profit of circa £8.9k
they would pay tax and class 4 of circa £450 this is for the yr 2011/12
or would this be more/less due to them earning paye gross of £3.9k and paid tax of 330 before becoming self employed.
All class 2 is paid.
Thanks for the assistance.
Regards
Andy
Gross income = Salary + Profits = £3,900 + £8,900 = £12,800
Taxable income = Gross income - Personal allowance = £12,800 - £7,475 = £5,325
Income tax at 20% on taxable income = £5,325 x 20% = £1,065
Tax Due = Tax liability - Tax deducted at source = £1,065 - £330 = £735 payable by 31/01/2013
Class 4 National Insurance @ 9% on profits above £7,225 therefore:
(£8,900 - £7,225) x 9% = £151 payable by 31/01/2013
Therefore total payable by 31/01/2013 = Income Tax + National Insurance = £735 + £151 = £886*
*No payments on account are required as tax due (£735) is less than £1,000.0
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