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Post Info TOPIC: Tax Calculation - weird??


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Tax Calculation - weird??
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Hi there

I can't quite get my head around this:

I have just filed a return,

Total income on which tax is due £5405.00

Tax Due £5405.00 @ 20%            £1081.00

Class 4 NI Due £6165.00 @ 8%    £493.20

I can't work out where the figure £6165.00 has come from????

It's not a problem - but if I had done the calculation on a manual tax return I would have calculated it wrong I would have found the NI Class 4 figure by £5405.00 @ 8% = £432.40.

Can anyone tell me where the figure £6165.00 has come from????

Thank you

Rachel


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Rachel



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Because you pay class 4 ni on any income over 5175 rather than the 6475 on which you pay tax.

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Advice from beyond the grave!!!

E&OE



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Thank you for that

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Rachel

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