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September 24, 2022

Income tax

  • September 24, 2022
  • 1 reply
  • 0 views

Hi,

Recently became self employed and struggling to understand the tax element. I had been quoted £436 for my tax payment, as I've just come out of my personal allowance. However, I earned £1082 last week and recorded this income on my app, only to be quoted £869 for my projected tax payment. 

This has jumped £433. This would be around the 40% deduction, but I haven't reached that yet and should still be in the 20% bracket? Confused as to how this calculated. I earn roughly the same every week. Surely 433 every week is excessive?

Any advice appreciated.

    1 reply

    September 26, 2022

    Hi Steven1 It would depend on the figures overall that you've entered as 40% will charge on income earned between 50,271 and 150,000. What's the income that you've earned/entered so far?