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This is probably going to sounds really stupid but am I right in saying that for 2014/2015 I wouldn't pay tax on the first £10,000 earnings? So if for example (purely made up) I earn £12,000 in that tax year I only pay around 20% tax on £2,000??
Sorry but i'm new to all this and am finding it hard to work out what I should be putting aside each month.
Thanks
Yes, your figures are right, giv or take.
HMRC have a tax and NI calculator to help self-employed people calculate roughly how much to set aside ahead of their tax bills:-
HM Revenue & Customs: Self-employed ready reckoner introduction
Great thank you :) x
If your income is £12000 then you can deduct 10% for wear and tear and then with other expenses you wouldn't pay any tax anyway as your income would be below £10K.:thumbsup:
Don't forget that anything over the NI level which I believe is £7495 for 14-15 you will pay NI class 4 at 9% on aswell as tax