Gross Income Needed to Net Differing Amounts

Anyone help with a table/graph/calculator/web link where I can see, at a glance, the gross income needed to net differing amounts.

Ken

Reply to
Ken
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It's easy enough to work out for a given set of circumstances, but there's no universal relationship because there are too many variables:

  • Different tax allowance depending on age
  • Different tax rates for earned and un-earned income (until 5th April this year)
  • NIC payable on earned income but not on investment income or pensions
  • Some of the 'income' may be offsettable against CGT allowance etc.
Reply to
Roger Mills

Right...you don't think there might be too many variables to make such a table meaningful? The factors that will affect your net income start with:

1) Where you live. 2) What the income is. 2) Other income you may have.
Reply to
Troy Steadman

I only need a rough guide so I am able to say "In the region of" when I discuss with people. I talk to those looking to work for themselves in a shops, guest houses, cafe, etc. I point out that when they live on the business some of the financial benefits they would enjoy would need a gross income of X.

Ken

Reply to
Ken

It seems a bit remarkable to be giving advice to people when you know nothing about the subject - you aren't a Usenet subscriber by any chance?

A rough rule of thumb for tax on wages and salary in the UK (which doesn't include your self-employed people) is that we pay 1/3rd of our income in tax.

Reply to
Troy Steadman

If you are seriously into that area I think you may also need to take into account housing benefit and/or tax credits.

Reply to
neverwas

It seems a bit remarkable to be giving advice to people when you know nothing about the subject - you aren't a Usenet subscriber by any chance?

A rough rule of thumb for tax on wages and salary in the UK (which doesn't include your self-employed people) is that we pay 1/3rd of our income in tax.

Why not stick to helping me with my question (as you gave in your second paragraph) and cut the sarcasm (as shown in your first paragraph). You have no idea what I do and I why I seek help from the NG. Ken

Reply to
Ken

It is always folks on normal income and no benefits who need some rough guidance when considering the self employment route.

Ken

Reply to
Ken

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Reply to
vulgarandmischevious

In message , Ken writes

Try:

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Reply to
Paul Harris

Thanks Paul

This is an excellent link which I will take a very good look at.

Ken

Reply to
Ken

Thank you this is another excellent link.

Ken

Reply to
Ken

This is pretty damn foolish thing to say. It is always "folks" who never get married and have children, and who don't pay rent and don't pay council tax who are "considering the self employment route"?

They need to know about VAT and book-keeping, that they pay their tax in two tranches, part of it in advance. There is a whole host of important life-changing advice they need from an accountant.

If you give them information you downloaded from a IR30 calculator I expect they will sue you. Here's a link to Professional Indemnity insurance...

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Reply to
Troy Steadman

"Troy Steadman" wrote

What part is payable in advance?

Reply to
Tim

This is pretty damn foolish thing to say. It is always "folks" who never get married and have children, and who don't pay rent and don't pay council tax who are "considering the self employment route"?

They need to know about VAT and book-keeping, that they pay their tax in two tranches, part of it in advance. There is a whole host of important life-changing advice they need from an accountant.

If you give them information you downloaded from a IR30 calculator I expect they will sue you. Here's a link to Professional Indemnity insurance...

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For your info I do have PII. I run my own company, am self employed, am Vat registered and know my way around accounts. You don't have a clue as to what I do and why I needed the help. Help I have got from two other kind souls on this NG who have shown the right spirit in replying to my question.

Ken

Reply to
Ken

Does the term "payment on account" not ring any bells?

Reply to
Ronald Raygun

POA is in anticipation of [ establishing ] the actual tax due.

If it was not "in advance", there would be no need for repayments.

And, Troy, it's 3 tranches, not 2 [ allowing that the third may be negative ] :-)

Reply to
Martin

Are you willing to tell the newsgroup why you need this information so that we can only direct you to appropiate links?

I don't think it's a good idea relying on what is on the internet if you are dealing with a variety of people such as employees, self employed, shareholders, or even a mixture of these.

Reply to
PeterSaxton

In what way exactly is a "negative tranch" a payment of tax? :)

Reply to
Troy Steadman

Are you willing to tell the newsgroup why you need this information so that we can only direct you to appropiate links?

I don't think it's a good idea relying on what is on the internet if you are dealing with a variety of people such as employees, self employed, shareholders, or even a mixture of these.

I can understand your curiosity but after searching for something I couldn't find 'vulgasandmischeivous' gave me an excellent link which is more than suitable for my immediate needs. I only deal with those thinking about going self employed usually buying an existing (usually small) business. I am extremely careful about any advice I give as people, in this day and age, seem more willing to threaten to sue for compensation. I also have numerous aspects of legislation I need to be wary about but hey that is my chosen career.

Ken

Reply to
Ken

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