Self employed Tax Accounting Software NI & Income Tax Calculator

DIY accounting software, tax accounting, payroll software, limited company formation UK

Self employed Tax Accounting Software NI & Income Tax Calculator

Self employed business profits are not taxed under the PAYE system for employees and are separately assessed for income tax and national insurance based upon the net taxable profit.

Net taxable profit is the total sales income less business expenses and capital tax allowances. To calculate the income tax liability deduct from the net taxable profit the personal tax allowance and calculate income tax at 20 per cent up to the upper tax band and 40 per cent over the upper tax band. Class 4 national insurance contributions are 8 per cent of net taxable profit between the lower NI threshold and upper NI threshold. Above the upper national insurance threshold the NI payable is 1 per cent

The DIY Tax Accounting Software for Sole Trader accounts and Self employed accounting contain the tax calculator shown below to automatically calculate the income tax liability. The tax accounting software also uses the accounting transactions entered during the financial year to estimate the year end net taxable profit and calculate the year end national insurance and income tax liability.

TAX CALCULATOR 2009 2010

Net Taxable Profit from Self employment			0.00
Minus Personal Allowance	2009-10		0
Total income on which tax is due			0.00
Income Tax first band	37400	20%	0.00
Income Tax second band	37400	40%	0.00
Income Tax payable			0.00
Deductions by contractors			0.00
Amounts Payable by	31 January 2011
Class 4 NI Contribution Lower - Upper profits		8%	0.00
Class 4 NI Contribution Upper profits		1%	0.00
TOTAL Income Tax & NI Liability			0.00

FUTURE TAX LIABILITY (if over £500)		This section for your information only
		Due Date	Amount Payable
		Due Date	Amount Payable
Tax & NI Assessment	2010-11	Previous Year	0.00
50% Payable		31-Jan-11	0.00
50% Payable		31-Jul-11	0.00
NOTES:
Working Tax Credit
Not taxable and not added to self employment income for tax purposes
Pension Entitlement
To receive Full Pension entitlement NI has to be paid 44 years out of 49 years (16 - 65)
UK residents aged 60 - 65 get 5 years bonus.
To confirm current NI / Pension entitlement years the helpline number is 0845 3000 168

"DIY Tax accounting software for the self employed accounts uses an automated NI and income tax calculator to produce the income tax liability"

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Copyright © 2006 2009 DIY Accounting Limited Last modified: 03/17/09

Copyright © 2006 2009 DIY Accounting Limited
Last modified: 03/17/09