CM Club - how much did you earn (roughly!) and how much tax/NI did you pay? (sorry not being nosey need an idea!)

[lunavix]

If my earnings are roughly 7700 for the year, roughly how much tax and NI will that be? I need to decide if I have to rustle up lots more receipts lol

06/07:

Income - £14725
Expenses - £8965
Profit - £5760

PAID - £130.50 today, that included the 8% NI on profit

HTH

on £7700 profit, you'll pay:

£7700-£5035(tax free) = £2665
x 10% = £266.50

• 8% NI on profit = £213.00

= total of £479.50

You also have to pay half of that sum again towards next year which I had forgot about!!!

I am confused, I thought NI was paid separately?

Also, Mumlove could you explain why you have to pay half of what sum next year?

ML - you don't, well I certainly never have

Crace - it's automatically worked out for you. You pay NI weekly/monthly then you pay 8% of your profit but the online system works that out when you submit

Yegads, that's loads! I pay a small amount now, but it adds up! 8% more yikes.

If your tax bill goes over a certain amount then you have to pay both the previous years tax (ie for the tax year April 06 - Mar 07) AND 50% again towards the current tax year (ie, April 07 - Mar 08). And the remaining 50% is due next July. thats whats happened to me.

My tax was about £700 for the year 06/07 but by the time they added NI Class 4 and 50% advance payment my bill to pay by end next week is about £1500. OUCH!

hmm I didn't have to pay anything towards next years tax and I earnt roughly £7000 after expenses last year too

Thankyou ayla99 for explaining.

I had to pay £617 06/07 plus £308 towards next tax year total £925.

thanks helly hows bump?

i had option to pay but didn't have to but then again, i didn't have to pay so much

bump is kicking away thanks

So if I have no profit this year I don't need to worry about extra NI?

Sorry for the hijack

crace - no, i think its over your threshold of roughly £5200 earnings for a year that you start paying extra NI and tax