Friday, August 13th, 2010

TaxFix

If you are self employed you can deduct any expenses related to your work against your income. Any excess, tax may need to be paid on at the following rate:

If you earn below the tax free allowance (currently £6,475) you should pay no tax, if you do, you can claim it back.

The basic rate of tax is at 20% and is the amount paid by people earning between £0-£37,400.

The higher rate of tax is at 40% and is paid on any earnings between £37,401-£150,000

The additional rate of income tax is paid at the rate of 50% and is paid on all earnings above £150,000

If you need help with a tax return, you can apply here:

http://taxfix.co.uk/tax-return/self-employed.php

Friday, December 31st, 2010

Marla

I am a complementary therapist with an income of £9,000 p/a. About £3,000 of this goes towards the cost of my training for a Diploma in Counselling, excluding the cost of texts, travel, additional seminars, and tutorial fees. What percentage of this can I deduct -if any-in order to calculate the tax I owe?