Tax payments

[Fee]

Hi guys,
How do you all save to pay your tax.
I am trying to take a bit out each week, but I am unsure how much to take.
I don't want it to be not enough and have loads to pay at the end of the Tax year.
Do any of you know a web site thats gives you an estimate. I have tried the Goverment site but is doesn't jgive you a guide line unless I am totally thick and can't see it.

Ta Fee xx

[sarah707]

An accountant I used to know told me 10% of my income... I've yet to pay tax though, so I have a nice nest egg every May :D

[sutherland]

2008/2009 personal allowance is #5435

so u minus this from your estimated yearly income

you pay 10% on 1st 2230 over your personal allowance

20% on the amount over from 2230 - 34600

so you can roughly work out an amount

eg you earn 15000 per year

9565 that you will be taxed on (15000-5435)
10% on first 2230=223
22% on rest (9565-2230)=7335 = 1613

total tax to pay = 223+1613=1836 divide this monthly /12= 153 a month but then u have all your expenses/wear and tear etc to take into account which will lower the amount you work out

Does this make sense? I'll see if i can find a ready reckoner online if not i'll grab next doors copy from a prev tax year

[Trouble]

= nothing left !!!!!!!!:laughing:

[manjay]

2008/2009 personal allowance is #5435

so u minus this from your estimated yearly income

you pay 10% on 1st 2230 over your personal allowance

20% on the amount over from 2230 - 34600

so you can roughly work out an amount

eg you earn 15000 per year9565 that you will be taxed on (15000-5435)
10% on first 2230=223
22% on rest (9565-2230)=7335 = 1613

total tax to pay = 223+1613=1836 divide this monthly /12= 153 a month but then u have all your expenses/wear and tear etc to take into account which will lower the amount you work out

Does this make sense? I'll see if i can find a ready reckoner online if not i'll grab next doors copy from a prev tax year

It would be very nice to be left with £15k as a taxable income! As you are supposed to lose 2/3 of your income that means you would be taking in about £45k. Can I really make this much money minding?:laughing: :laughing:

amanda xx

[sarah707]

2008/2009 personal allowance is #5435

so u minus this from your estimated yearly income

you pay 10% on 1st 2230 over your personal allowance

20% on the amount over from 2230 - 34600

so you can roughly work out an amount

eg you earn 15000 per year

9565 that you will be taxed on (15000-5435)
10% on first 2230=223
22% on rest (9565-2230)=7335 = 1613

total tax to pay = 223+1613=1836 divide this monthly /12= 153 a month but then u have all your expenses/wear and tear etc to take into account which will lower the amount you work out

Does this make sense? I'll see if i can find a ready reckoner online if not i'll grab next doors copy from a prev tax year



So... bear with me here... I'm new to this numbers making sense lark...

You have your total income = £15,000... you then take off expenses of, say, £8,000... so £6,000 is what you are declaring to the tax man.

From that, you have a personal allowance of £5,400... so the amount you are paying tax on is £2,600.

You are taxed at 10% on £2230 = £223.00

And taxed at 22% on the rest (which is £370.00) = £81.40

So your total tax bill for the year will be £304.40

OH WOW!!!! After all these years I'm having a 'Pygmalian' moment - I think she's got it... :jump for joy:

Please tell me this is right or I will have to delete it :p

[manjay]

Yippee!!

amanda xx

but I would find some more expenses so I didn't have to pay any tax

[sutherland]

15000 income-8000 expenses= 7000 gross profit

7000-5400 allowance = 1600 to be taxed on

10% on 1600 = 160 tax to be paid

you got the idea, just the wrong figures to start off with!!!!!

[sarah707]

Oops! :blush: :blush:

But hey, I still nearly got it! :jump for joy:

[sutherland]

also remember that you get tax relief on any pension contributions you make and any charitable gifts, so keep note of these over the year

[Fee]

A big thanks to everyone who has answered.
You have been a big help.
It looks like I have been over estimating what to put aside.
Yipee:clapping:

Fee:laughing:

[berkschick]

Ive got a chart thing somewhere that tells you how much you should put aside depending on what you owe. I will try and find it........

[Tily Bud]

Thanks that has really made things a lot clearer x

[Fee]

That would be great berschik

[louise]

Hi, I use this to check if im keeping enough by
http://www.listentotaxman.com/index.php?calc=1&year=2007&isMarried=1&age=0&add=0&taxcode=503l&period=52&ingr=0&Submit=Calculate
hth louise