HMRC have a new free tax calculator tool which can be used to estimate the amount of Income Tax (not including other taxes such as Capital Gains Tax) and National Insurance contributions you can expect to pay on your income. It also shows how this money is spent by the Government. It is aimed at people who pay tax through Pay As You Earn (PAYE).
The tax calculator can also be downloaded as a free mobile app from Apple iTunes or Google Play.
The calculator can be accessed from the ‘All calculators and tools menu’ on the HMRC website – choose HMRC tax calculator.
The calculator is just an estimate, based on the figures entered and may not match pound for pound the Income Tax and National Insurance shown on a payslip. It does not ask you for any personal identity information (other than date of birth if that is relevant for the calculation) or store the information and HMRC cannot access the data.
There are two calculations available, one for simple situations and a second for more advance circumstances.
The simple calculation can be used if you can answer 'yes' to these statements:
- you're under State Pension age
- you get the basic tax-free Personal Allowance
- you have employment income only – not occupational or personal pension income or other income, e.g. from savings
- you pay Class 1 National Insurance contributions
- you don't contribute to an occupational or personal pension through your employer
- you earn £100,000 or less
At Edwin Smith we can provide full and accurate tax calculations. Please contact us if you require further advice.
