How much tax can i expect to pay being Self Employed?

Question

I have just gone self employed. I am looking to earn 60000 pounds sterling this year maybe up to 70000, how much tax can i expect to earn on this. In pounds sterling please.
cheers,

Answer 1

You will pay the same tax as if you earned that amount as an employee.

The only difference with self employment is that the rules regarding claiming expenses are somewhat more relaxed so your taxable profit as self employed could be lower than the taxable profit as an employee.

For actual figures the tax is £7,344.40 on the first £34,600 of taxable income (i.e. after personal allowances) and 40% thereafter. The basic personal allowance this year is £5,225.

Answer 2

I earn about that much as a self employed musician
I play the violin, I don't pay any tax at all
as I am on the fiddle everyday
just joking Mr Taxman

Answer 3

You will pay income tax on your NET PROFIT. This is how much profit you make after deducting all of your allowable expenses, eg, vehicle expenses, advertising, accountants fees, bank charges, depreciation, stationery, postage, wages (to staff), etc.

Once you have this figure (and provided this is your only taxable income), you can calculate your tax as follows;

EG, Income £70,000 Expenses of £50,000 , therefore Net Profit £20,000

Deduct tax free allowances of £5225
£14,775
You pay Class 4 National Insurance on this at 8% = £1182
You pay Income tax on the first £2230 at 10% = £223
You pay Income tax on the remaining £12545 at 22% = £2760

In total this comes to £4165.

If your Net Profit is in excess of £39,825, you will pay some tax at the higher rate of 40%

Answer 4

Depending after taking your expenses out of it, how much net profit is left. Any profit you will pay 20%,but if you have a good accountant you will pay nothing.

Answer 5

Insufficient information to give reasonable answer

Answer 6

What work will you be doing?