Tax Calculations

Worried about how much tax you need to pay?

If you would like a quick and rough response, you can log onto HMRC’s website and click on the Calculators and Tools tab.

In there is a self employed ready reckoner which will allow you to enter your expected net income (ie sales less expenses) to work out roughly what you can expect to pay in tax and Class 4 NI.

Bear in mind this does not take into account any other income you have, and if this is your first year of paying any tax, you may well need to pay double the amount, as you need to pay upfront for next year.

It will also not include any loss relief you may have if you have made a loss in a previous year.

This blog was written by Lorraine Dale from Rightway Accounting Services. Do contact Lorraine for more information or if you need clarity on any of the points.