tax quicky

[peter richards]

just a quick one guys , how much tax am i likely to pay on 29.5k , im self employed now , just a rough idea , as im working out a few things

thanks peter

[Supragal]

as in gross annual salary of 29.5k? done on PAYE or discounting petrol etc? per month or per year take home?

 

PAYE I would guess you would take home 1870 or thereabouts net monthly

 

heres a website that might help:

 

http://www.freelanceuk.com/money/payslip_calculator.shtml

[peter richards]

yes rosie top line that figure

[Dragonlady]

as in gross annual salary of 29.5k? done on PAYE or discounting petrol etc? per month or per year take home?

 

PAYE I would guess you would take home 1870 or thereabouts net monthly

 

heres a website that might help:

 

http://www.freelanceuk.com/money/payslip_calculator.shtml

 

That only applies for employed people though, but Peter is self employed and therefore has to pay different NI rates. On £29.5k you are probably looking around £6 - £7k (I know it stinks)

 

Just out of curosity is that figure after deducting all the expenses that you can think of?

[Supragal]

I don't really know how the self employed bit affects it, but if you worked for someone, salaried then that would be about right I reckon.

[peter richards]

yes the accountant will do his bit , im just trying to get a net figure in my mind to see if its werth following up on an offer ive just had

[DannyW]

Peter, my mrs is an accountant specialising in tax, i'll ask her to have a look at it for u later if you want?

[peter richards]

ok mate only a rough figure £29.5 is before any deductions

[Havard]

I thought you would come home with a lot less that £1870!!

 

I take home that and I am on 32K, although I do have pension and company car tax too!!

 

H.

[DannyW]

ok mate only a rough figure £29.5 is before any deductions

 

 

 

She should be back from the hairdressers ( ) soon so i'll ask her to work it out, obviously with all the expenses it will be loads less.

[chilli]

I thought you would come home with a lot less that £1870!!

 

I take home that and I am on 32K, although I do have pension and company car tax too!!

 

H.

 

 

agreed, I'm on more still than 32k and it doesn't top out that much more net by the time you've factored in friggin tax and NI

 

from memory, when I used to earn 30k something like 16-1700ish net pm may be about right after all deductions, does depend on your tax code etc and if you touch into the b@stard 40% tax bracket too (you should be ok with that)

[DannyW]

Here's her reply:

 

Based on tax year 06/07 (assuming that figure relates to thaat tax year) you'll pay approx £5100 in tax on £29.5k profit less £5035 personal allowance. However this would change if you have any other income, e.g. interest or dividends.

 

Those figures are based on self assessment rules not employment and the it's also tax only, you will also pay NI.

[peter richards]

thanks dan , appreciate your time mate

[Dragonlady]

Here's her reply:

 

Based on tax year 06/07 (assuming that figure relates to thaat tax year) you'll pay approx £5100 in tax on £29.5k profit less £5035 personal allowance. However this would change if you have any other income, e.g. interest or dividends.

 

Those figures are based on self assessment rules not employment and the it's also tax only, you will also pay NI.

 

NI will be approx £1900 on top as it charged at approx 8% of your profit - therefore you can expect to pay about £7000 in total as mentioned earlier

[peter richards]

thanks for all your replies

[Havard]

NI will be approx £1900 on top as it charged at approx 8% of your profit - therefore you can expect to pay about £7000 in total as mentioned earlier

 

God!! That is depressing.........

 

H.

[chilli]

so that does work out around 1875pm take home then?

 

(29500 - 7000) / 12 = 1875

 

not bad actually, think yourself lucky you're not in the high tax bracket, that hurts a lot!

[Dragonlady]

(29500 - 7000) / 12 = 1875

 

not bad actually, think yourself lucky you're not in the high tax bracket, that hurts a lot!

 

 

True, fortunately he is quite a bit below the 40% threshold, but still it's a lot of tax etc to pay

[Jive]

My mate is self employed and pays no where near that tax amount for approx the same amount of earnings, he writes most of his expenses off against tax, petrol, clothes, parking meter tickets, computers - just about everything you can think of

 

If he was paying that much tax, I'm sure he'd have soon told me, perhaps a talk with another accountant to see if you could claim for more to write off against your tax would be an idea?

[Dave Haggas]

Gotta say 40% sucks,really sucks....

[Mas]

Peter my accountant always says 19% on profit, so keep making bills for yourself