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Uk Paye Tax Calculator

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Uk Paye Tax Calculator document sample

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									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.
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