I know it varies but I want to know roughly what percentage you pay depending on your earnings if you're self employed. Can anyone help?
2007-01-05 00:10:55 · 6 answers · asked by clairecla78 1 in Business & Finance ➔ Taxes ➔ United Kingdom
The actual percentages can be found on the Revenue website at www.hmrc.gov.uk but I assume you want to make a realistic estimate. When I say income here I mean your gross income less all your allowable expenses.
On the first tranche of income (just over £5,000) you do not pay anything.
On the next £32,000 odd you pay 30%. This is 22% basic rate tax and 8% national insurance. (I know I've missed out the 10% band but it's only about £2,000 so it is not that significant)
Anything over this you pay 41%. 40% higher rate tax and 1% national insurance.
Does this answer the question or have I interpreted your use of the word "roughly" too liberally?
2007-01-05 08:25:16 · answer #1 · answered by tringyokel 6 · 0⤊ 0⤋
I think I should clarify Mrs W's answer.
A self-employed UK Taxpayer cannot put through all of their expenses - only those which are wholly and exclusively for the purposes of their trade (so not anything that is remotely personal for example, travelling back and forth from your home to your office or your daily lunch expenses). Additionally, any expenditure that may have been spent on an item used in the business to earn profits and not sold on as stock is not an allowable deduction for tax or accountancy purposes.
Anyone needing advice on completing their tax returns should speak to a qualified accountant.
2007-01-08 05:22:40 · answer #2 · answered by notmarriednochildren 4 · 0⤊ 0⤋
You pay as much as anyone in the UK would pay if you were employed. The only difference is that you pay tax on your profits. So you can put all of the expenses that you have paid throughout the year against the income. The difference is called taxable profit and this is what you pay the tax on.
2007-01-07 02:23:51 · answer #3 · answered by Mrs W 2 · 0⤊ 0⤋
Income Tax (PAYE) is roughly 22% for lower earners and 40% for higher earners (over ~£33,000)
You will also pay NI at about 11%
It's way more complicated than that though. Try searching for an online income tax calculator on the web.
2007-01-05 01:39:07 · answer #4 · answered by Robin the Electrocuted 5 · 0⤊ 0⤋
Usually if you send back your self assment forms to HMRC by 31 Jan of each year they will work out the tax for you!
as HMRC say "Tax doesn't need to be taxing" lol
2007-01-06 10:46:41 · answer #5 · answered by heyho B 2 · 0⤊ 0⤋
30% roughly... u have deductions, etc... will make that less.
2007-01-05 00:12:09 · answer #6 · answered by Anonymous · 0⤊ 0⤋