15th September 2019 - Tax Week 24
How to use?
Using this calculator you can see the overall effect of UK taxation on your income - no matter what the source may be.
Once you have started your calculation, you will be asked to enter your date of birth and if you are married, the date you got married. This is for us to make sure your default allowances and reliefs are calculated as accurately as possible.
Your information will be saved under your email address and a secure password you create.
You can then enter the following details:
When you have finished, just select the tax year and hit calculate!
You will see a breakdown of the tax and the overall taxation amount and rate for you in that tax year.
If you have multiple income sources you will need to determine the type of tax that is applicable to each source. For example, multiple PAYE employments should be combined into one total income to determine the amount of income for the tax year.
But what if you have a part-time job, have started a small business and pay yourself a dividend, rent out a property, have a savings account and recently sold an investment property?
That's a lot of different income coming in – and purely hypothetical! But even with a few differing sources it gets complicated. The way you notify HMRC is to complete a Self Assessment Tax Return. The Tax Return splits your income into categories where you can provide income and expenses for each type and allow the taxman to calculate your total liability and bill.
However, what if you wanted to estimate what your tax bill would be? Maybe you are planning your budget and want to know what your average monthly take home income would be equivalent to, well using our multiple income wizard allows you to do just that. Quickly calculate any combination of income type for any tax year since 2009.
In order to provide a simpler experience, we ask you enter common details such as your date of birth so you only have to adjust the income figures each time a calculation is run. In addition to this, the last calculation you run is always saved so when you log in to the wizard, you can continue where you left off.
All income is to be split into non-savings and savings income. You then literally whittle down the tax free allowance you have along with the tax bands you have, as you go through each income source, adding up the taxes due at each stage.
Some income types have their own allowances or exemptions, which need to be taken into account, for example, capital gains tax. Other types do not have an allowance, such as dividends, thus some people making a small salary payment to cover the tax free allowance with the remainder taken as a dividend.