Income Tax Calculator for the April 06 2009 - April 05 2010 tax year Welcome to the Which? Income Tax Calculator. Use it to get a quick idea of your income tax for the 2009-2010 tax year. How to calculate your Income Tax ● Click on the hyperlink below and work your way down the form, following each step and entering your details as you go. ● Round all sums you enter to the nearest pound in your favour - income down and outgoings up. ● By typing your details into the BLUE boxes the RED boxes will begin to calculate your tax. ● You can take a break and print out your progress so far on an A4 printer or save this spreadsheet at any time. What isn't covered To keep things simple, our calculator doesn’t cover: ● Taxable gains from life insurance and taxable lump sums from employers. ● Gift-aid payments if you pay little or no tax. ● Double taxation relief on income from abroad (otherwise foreign income is treated largely as if it were UK income). ● Student loan repayments collected through your tax. ● Over or underpayments of tax from a previous tax year. If any of the above applies to you, you can use the Revenue & Customs’: ● Internet service, Self Assessment Online. You can use their free Online Tax Return or commercial tax return software. Visit www.hmrc.gov.uk for details. ● or you may be able to use their paper Tax Calculation Summary notes. Download them at http://www.hmrc.gov.uk/sa/forms/net-09-10.htm What you don't need to enter The following income is tax-free and you can ignore it when filling in the calculator: ● Interest from National Savings certificates and children’s bonus bonds; premium bond prizes. ● Savings or investment income from Isas, Venture Capital Trusts, SAYE accounts, child trust funds or friendly society tax-exempt plans. ● Education grants and scholarships. ● Some damages for personal injury. ● Most insurance benefits if you are sick, disabled or unemployed. ● Rental income that is tax-free under the rent-a-room scheme. ● Interest on tax rebates or on delayed compensation for injury or death. ● Statutory redundancy pay and some other lump sums from employers. ● Housing benefit, council tax or rent rebates and home improvement grants. ● Adoption allowances and most foster care payments. ● Maintenance and alimony. ● Some state benefits, including child benefit, tax credits and pension credit. ● Payments from some long-term care policies if paid directly to the care provider. ● Qualifying life insurance policies – not strictly tax-free but you are not taxed on any payouts. ● Tax-free lump sums from a pension plan. ● Lottery and betting winnings. Click here to begin… Income Tax Calculator for Tax Year 2009 to 2010 STEP 1 - Your non-savings income Under Taxable income enter the gross (before-tax) amount of your income for 2009 to 2010. You can ignore any tax-free income. Under Tax paid enter any tax deducted through PAYE, plus any payments on account made on 31st January 2010 and 31st July 2010. Do not include any payments made to cover tax outstanding from earlier years. Taxable amount Tax paid ● Income from employment £27,000.00 Notes Before entering your taxable income, deduct any contributions Include your basic salary or wage, commission, bonuses, profit to your employer's pension scheme, charitable payments made shares, tips, holiday pay, taxable sick pay, maternity, paternity through a payroll-giving scheme and anything spent on or adoption pay, the taxable value of fringe benefits and allowable expenses. expenses payments. Taxable amount ● State pensions and benefits Notes Enter your total taxable state pensions and benefits, but not Other tax-free benefits which you should not enter include tax pension credit, winter fuel payments or Christmas Bonus, credits, child benefit, housing benefit, council tax benefit, which are tax-free. Don't include lump sums from deferring attendance allowance, bereavement allowance, maternity state pension - these are paid with tax deducted. allowance and disability living allowance. Taxable amount Tax paid ● Private pensions Notes Enter the before-tax amount of any private pension, either Pensions from abroad get a 10 per cent deduction, so the taxable from your employer or a pension you bought for yourself. Don't amount is only 90 per cent of the amount due. include any tax-free cash lump sum. Taxable amount Tax paid ● Taxable profits from self-employment or a partnership Notes Enter your turnover less allowable expenses and less any other See the online advice guide for information on working out your deductions (such as annual investment allowance, capital taxable profits. Include odd bits of freelance income. You can allowances and loss relief). find the tax you have paid on any statements of account you Taxable income Tax paid have received. ● Income from land or property Notes Before entering your gross income, deduct any expenses and You can find the tax you have paid on any statements of account any loss relief. If you let rooms under the rent-a-room scheme, you have received. don't enter any tax-free amount of rental income. Taxable amount Tax paid ● Other taxable non-savings income For example, non-savings income from trusts, income from the estate of someone who has died, and property income dividends from a Real Estate Investment Trust. Taxable amount Tax paid Total non-savings income £27,000.00 £0.00 STEP 2 - Your taxable income from savings and investments Enter any taxable interest you received from banks, building societies, National Savings & Investments, British Government stocks, corporate bonds, bond-based unit trusts and from some annuities (but not pension annuities - these go in Step 1). Please enter your: Amount received Tax deducted Gross income ● Taxable interest received with tax taken off £0.00 £0.00 Amount received Gross income ● Taxable interest received with no tax taken off £0.00 Total interest £0.00 Now enter the amount you received from shares, share-based unit trusts or Open-Ended Investment Companies (OEICS). Net dividends Tax credits Gross income ● The dividend or distribution as shown on the tax voucher £0.00 £0.00 STEP 3 - Deductions from your taxable income Please enter the following payments which may qualify for extra tax relief: Amount paid Tax relief Gross Notes ● Net pension contributions £0.00 £0.00 You have already had basic rate tax relief by Enter the amount paid into a personal or stakeholder pension paying over less than the full amount to the or free-standing AVCs, or a pension term insurance policy that pension company or charity. But you need to enter qualifies for tax relief (see note under Step 2). the payments here because you may get a higher personal allowance, or qualify for higher-rate tax Amount paid Tax relief Gross relief. ● Gift-aid donations £0.00 £0.00 Enter the amount you paid, minus amounts 'carried back' to 2008-2009, and plus amounts 'carried back' from 2010-2011. Total deductions which may qualify for extra tax relief £0.00 Please enter any deductions that qualify for full tax relief: Amount paid Gross ● Full-relief deductions £0.00 Include: any payments you make before tax relief into a retirement annuity contract; interest on a loan to buy into a company or partnership; business losses that you are claiming to deduct from your non-business income; relief on gifts of qualifying investments or land to charity. Total deductions from income £0.00 STEP 4 - Allowances that give you full tax relief To allow us to calculate your personal allowance, please enter your: Notes ● Date of birth (dd/mm/yyyy) 7/9/1957 If you were born before 6 April 1945 enter your date of birth as you may get a higher personal allowance. But this is reduced by £1 for each £2 your income is above £22,900. It cannot be Extra allowance for people aged 65 or more £0 reduced to less than £6,475. Your total income after deductions £27,000 Reduction of £1 for each £2 of total income above £22,900 £0 Personal allowance £6,475 ● Blind person's allowance If you were entitled to this, enter £1,890. If your spouse or civil partner can claim the allowance but doesn't use it in full, enter any unused amount here and ask your tax office to transfer it to you. Total allowances that give you full tax relief £6,475 STEP 5 - Married couple's allowance ● Are you entitled to claim married couple's allowance? 2 Notes Yes No You can claim if you are a married man, or (if you were You can claim one allowance between you. You married on or after 5 December 2005), the higher-income can share it, but it is always the husband's or spouse or civil partner, and either you or your partner was higher-income partner's income that is used to born before 6 April 1935. decide the amount, so only that partner should click 'Yes'. ● Your spouse or civil partner's date of birth If your spouse or civil partner was born before 6 April 1935, and is older than you, enter his or her date of birth so that we can calculate your married couple's allowance. Full allowance you can claim £0 Reduction of £1 for each £2 of total income above £22,900 £0 Minus any reduction already taken off your personal allowance Allowance for full year (minimum £2,670) £0 ● If you married after 5 April 2009, enter date of marriage Notes You lose one-twelfth of allowance for each month Number of months' allowance that you are eligible for 12 in the tax year before your marriage. Married couple's allowance £0 ● Allowance transferred from your spouse or civil partner Notes If your spouse claims the allowance but does not use it all, you Married couple's allowance does not work like can claim to transfer the unused amount to you. personal allowance and does not reduce your Tax relief taxable income. Instead, the amount shown is Total married couple's allowance £0 x 10% = £0 knocked off your tax bill. Married couple's allowance does not work like personal allowance and does not reduce your taxable income. Instead, the amount shown is knocked off your tax bill. STEP 6 - Other payments which qualify for tax relief Please enter the amount paid which qualifies for tax relief: Amount paid Tax relief ● Maintenance deduction x 10% = £0.00 If you paid maintenance to an ex-spouse or partner under a binding agreement, and either of you was born before 6 April 1935, enter the amount paid (£2,670 maximum). + ● Enterprise Investment Scheme x 20% = £0.00 + ● Venture Capital Trusts x 30% = £0.00 + ● Community investment tax relief x 5% = £0.00 Total Total tax relief £0.00 STEP 7 - Your tax bill Income Taxable income £27,000 Allowances and deductions which give you full tax relief £6,475 Taxable income £20,525 Tax is due on this as follows: Tax Notes Income taxed at basic rate £20,525 x 20% = £4,105 If you have paid into a personal pension or Gift Aid + more of your income will be taxed at basic rate, to Income taxed at higher rate £0 x 40% = £0 give you any higher-rate tax relief due. + Notes Interest and dividends eligible for 10 per cent tax £0 x 10% = £0 The 10% rate applies to interest only if other + income (after allowances) is under £2,440. Dividends liable to higher-rate tax £0 x 32.5% = £0 = Total tax £4,105 From this you can deduct: Minus Married couple's allowance £0 - Other tax relief £0 - Dividend tax credits £0 = Total income tax due £4,105 STEP 8 - If you've had business profits, add Class 4 National Insurance Business profits £0 ● Are you exempt from paying Class 4 National Insurance? 2 Yes No The most common reason for being exempt is if you were over state pension age (I.e. 65 for men, 60 for women) on 6 April 2009. Class 4 NI on taxable business profits This is 8% of profits between £5,715 and £43,875. £0 x 8% = £0 + And 1% on profits over £43,875. £0 x 1% = £0 = Total Class 4 NI £0 STEP 9 - Your tax bill Income tax plus Class 4 National Insurance £4,105 - Tax you've already paid £0 = Your tax bill or, if a minus figure, tax overpaid £4,105 You may need to make adjustments if you have already had a tax refund during the year. ● Well done! Make yourself a nice cup of tea! Disclaimer Although the publisher endeavours to make sure the information in this calculator is accurate and up-to-date, it is only a general guide and nothing in it constitutes taxation advice by Which? Readers should consult a qualified tax adviser who can consider individual circumstances if taxation advice is required. Which? Limited does not accept any liability for any loss or damage suffered as a consequence of relying on any information contained in this guide. bonuses, profit ernity, paternity nefits and nter include tax tax benefit, , maternity on, so the taxable working out your come. You can f account you ments of account tax relief by ount to the you need to enter may get a higher r higher-rate tax date of birth as his is reduced by cannot be ween you. You husband's or hat is used to partner should e for each month age. not work like reduce your ount shown is not work like reduce your ount shown is ension or Gift Aid d at basic rate, to f due. only if other er £2,440.
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