Get your 2022/2023 TAX RETURN ready!
Why go through the stress of a last-minute tax return submission? HMRC experiencing processing delays this year, so the earlier you get yours sorted, the better.
How is the tax calculated?
What you owe in Income Tax is calculated based on how much you earn. The Income Tax rates are set by the government. In the current 2022/23 tax year, the rates are in the table below:
Income |
Tax rate |
|
Up to £12,570 |
0% |
Personal allowance |
£12,571 to £50,270 |
20% |
Basic rate |
£50,271 to £125,140 |
40% |
Higher rate |
over £125,141 |
45% |
Additional rate |
The income thresholds were recently changed by the government, but the tax rates remain the same. It’s important to remember when calculating your taxes that the rates only apply to a part of your income and not the whole amount. For example, if you earn £60,000 a year, you’re not taxed 40% of this full amount. It breaks down like this:
-
£12,570 = tax-free
-
£37,700 = 20%
-
£9,730 = 40%
What about expenses?
When you’re self-employed, you can deduct your business spending from your overall yearly earnings so that you’re only paying tax on your profits. This business spending is known as your expenses. In order to deduct expenses, it’s important to keep a record of what you spend, on what, and when.
Ready to file now?
That’s the spirit. We’re ready to take your tax return off your plate whenever you are – and if you have any questions, just get in touch.
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