Budgeting for your Tax payments
Love a surprise Tax bill? No? Thought not.
There’s no avoiding tax – not legally anyway – and so you may as well prepare yourself for the bill by estimating how much it will be and saving a little bit towards it each month.
As ever, the lovely HMRC have a helpful bit on their site that lets you calculate roughly how much Tax and NI you’ll have to pay at the end of the tax year. All you need to do is put in your estimated weekly or monthly profit and tah-dah – it gives you an estimate!
This is aimed at Self-Employed people as tax for Limited companies etc is a whole different ball game.
Of course, this figure won’t be the same as your final bill as it will be based on your estimated profit and (unless you’re Mystic Meg) won’t be 100% accurate. But it gives you a good guide as to how much you'll need to save each month to make sure you're not panicking when the bill does finally drop down on your doormat.
Follow this to get to the calculator https://www.gov.uk/self-assessment-ready-reckoner
And use this to contact Money Bee with any queries SAY HELLO