View Full Version : How much to set aside for tax??
chantelbutterwo
12-11-2008, 08:06 AM
I am currently earning about £500 a month and wondered how muh you think I should be putting away each month to set aside for tax? Some people say 10%, some 15% others 20%??!! EEEKKKK!! :panic: Help please.
balloon
12-11-2008, 08:10 AM
I am pretty sure that tax is now set at 20% (didn't the 10% tax allowance get abolished?) so I would say set aside 20p in every pound you earn for tax. Don't forget you may get stung for class 4 NI too if you earn a lot.
sarah707
12-11-2008, 08:17 AM
Yes tax is now 20p in the pound once you've earned over £6000...
Open a little savings account or even a tax free mini ISA then as you save at least you are getting some interest on it, which is yours to keep when you've paid the tax man. Always makes me feel better :D
LittleMissSparkles
12-11-2008, 08:23 AM
talkin of tax how much do you all roughly pay in tax..... or do you try work it so you dont !!! LOL I earn alot of money at the minute and want to know how to work out how much i need to spend to write it off against my accounts to pay less tax xxx
FizzysFriends
12-11-2008, 11:12 AM
If you earn a lot then I would invest in a good accountant at the end of the year, its amazing what they can do to get your tax bill down! Well worth the money if you think you are going to end up with a large tax bill.
LittleMissSparkles
12-11-2008, 04:04 PM
If you earn a lot then I would invest in a good accountant at the end of the year, its amazing what they can do to get your tax bill down! Well worth the money if you think you are going to end up with a large tax bill.
I do have an accountant but last year was only a part year as only began in the June so this year will be my first full year and I do earn a good wage from it to be honest but work alot of hours and very hard so want to pay as little in tax as possible iyswim x
madasahatter
12-11-2008, 05:46 PM
£500 per month is £6000 per year. Considering you will have expenses to deduct from that then you really shouldn't need to put anything away as your earning will be below the taxable threshold. However, I would say it is good practice to get into the habit of putting something away (if you can afford it). That way you have money in hand for if any mindees leave or to treat yourself once a year :)