How do I estimate my tax?

[divegirl]

Good Morning, I have recently registered self employed and although I know there is probably a number I can ring I am sick and tired of sitting on hold on 0844 numbers!
I just need a ball park figure of how much I should save each month to pay my tax bill.
I earn approx £680 pm and get Child and working Tax credit of £130 a week [although I don't think that that is taken into account].
I am paying my NI contribution direct debit so thats sorted but I have just completed my first month and need to put some away.
It has been suggested that a save 20% of all I earn ,I know that will be over the top but at least I would be covered.

Lisa x

[BlueScorpion]

My husband is self employed but paid under the construction scheme which means that 20% of his earnings are deducted each week & paid to the tax man. This means that we can guarantee a rebate once we've done the tax return each year, so yes I would definately say put aside 20%. That way you should have more than enough to pay the bill when it's due

[TopKat]

Don't know how accurate this is, but here's a website that might help http://www.selfemploymentcalculator.com/

[divegirl]

Many thanks to you both :0)

[kinell]

You earn £680 per month and also receive £565 per month in so-called tax credits.
My understanding of a 'credit' is a balancing payment of a proportion of an initial amount.
As a basic rate tax payer your monthly tax liability would be £0.92 and nat ins of £5.68.

As self employed on those figures you appear not to have to put anything aside.


Tax Credits........................Sounds like a handout to me.....

[BlueScorpion]

I'm not sure how you worked that out Kinell, on those figures Lisa will be earning just under £15,000 a year and unless she has a very high tax code there will be tax to pay.

[ummmm]

kinell...it's not a hand out. It's to keep parents in employment. It's to ensure they are better off working.

I don't know what the allowance is now (£6k??) so you will only be liable for tax on the remainder.