Can someone clever please give me a rough tax breakdown on this income (UK)?
Marriage and kids make no difference to his tax liability these days. I have to tell you about two sets of figures. Currently the tax-free allowance is £5435. This would make his tax liability £11365 x 20% = £2273.00. In September, the tax allowance changes to £6045, and becomes retrospective to 6th April, so his liability reduces to £10770 X 20% = £2154.00. He could probably claim expenses in carrying out his work, which would reduce the bill. He’d probably have to consult an accountant the first year at least, who could save him a lot of money. He will be also liable to National Insurance. Hope I have this right, I’m not used to doing it manually! I’m also not sure if this also changes in September. Current Class 2 rate is £2.30 weekly, yearly rate £119.60. The self-employed also have to pay Class 4 contributions, which is based on earnings. On the rate quoted, I think he would have to pay £869. That is calculated by taking the £5435 lower profits limit from earnings £16800, (£11365)
