Self Employed Tax

A financial accounting file which contains several tax accounting spreadsheets that fully automates the tax software of the self employed using a tax accounting spreadsheet.

Sole trader income tax preparation software and tax calculator

The basic sole trader bookkeeping solution contains a financial accounting file which contains several tax accounting spreadsheets that fully automates the tax software of the self employed using a tax accounting spreadsheet.

The small business tax preparation software is fully automated using excel formulae to produce both the self employed short tax return and also calculates the income tax and class 2 national insurance contributions liability of the sole trader.

The net taxable profit is calculated from the sales and purchase accounting spreadsheets and the self employed short tax return designed to look and feel exactly the same as the HMRC self employed tax return form with all the same box numbers. That net taxable profit is then transferred to the tax calculator which contains the personal tax allowances, tax rates and national insurance rates applicable for that financial tax year. The tax software automatically calculates income tax and class 2 national insurance contributions applicable to self employed business. National insurance is 8% of taxable profit up to the upper earnings threshold and 1% thereafter.

No manual entries are required to the tax accounting spreadsheet in this tax preparation software which is preset with the income tax bands and tax rates to enable the tax liability to be checked by simply visiting the tax accounting spreadsheet at any time avoiding any unpleasant tax surprises at the year end. An important part of the sole trader accounts package is the income tax payable being potentially the most significant costs of any self employed businessman making the tax software an essential business tool.

CIS tax paid by subcontractors during the year is collected from the sales accounting spreadsheet and deducted from the income tax liability to keep the sole trader informed of the tax position.

The income tax calculator also shows the dates when the income tax assessed for the following year will be required to be paid after the tax return has been submitted.

Screenshot of the Income Tax Calculator


As personal tax allowances can vary between individuals then the tax calculator can only be an estimate but for those sole traders on the standard tax allowance the calculated tax liability will be accurate

Brief descriptions of the full range of Accounting Software, Payroll Software, Company Formation are available on the DIY Accounting home page

"Sole trader tax preparation software fills in the short self employed tax return with an income tax and national insurance liability calculator"