October 6, 2011
With increasing numbers of workers in the UK working contract jobs and becoming self employed, there has been a major outcry for a British tax calculator to help them keep all those figures sorted for the tax man.
One minor slip could cause a myriad of legal issues for self preparers and self filers. This is one of the biggest reasons the type of UK tax calculator you use could be of vital importance.
An online tax calculator is the easiest to use, most times they are 100% free and there are many types available so that any question you have in regards to capital gain taxes could be calculated quite easily with the right free tax calculator.
Keep in mind that capital gains means anything from earned income to returns on dividends and interest earned through accounts even in offshore accounts. In other words, any time you realise a profit there is a potential for that money to be taxable.
The only real question you should have at this point is which type of tax calculator would best suit your purposes. A British tax calculator is actually nothing more than an easy online software program that allows users to type figures into boxes in order to tally taxes due based upon prespecified deductions and tax codes.
Whether you are a sole trader, an employed director or someone who gets full director’s dividend, you may want to look at a calculator that computes that tax on those dividends for any given tax year. Keep in mind that each type of tax calculator UK oriented usually focuses on one level of what will be needed when taxes are claimed at tax time.
Tax Code Calculator
Once you know what your tax codes are as they have been assigned to you by HMRC a tax code calculator can make your job of reporting so much easier. Perhaps you have worked two jobs within the same tax year which would be why using a tax code calculator can make the job of reporting so much easier.
This type of tax code calculator will base deductions, for example, on both (or several jobs) on a one-job tax code deduction. This greatly simplifies the process for you, especially when it comes to reporting. Although you will most likely need to itemise those entries, have an idea of the bottom line does simplify your understanding.
You may still need the assistance of a professional tax submission service, but your tax code calculator can have the work virtually done and ready to be filed. A submission company may simply verify your figures, look for inconsistencies and check for any ‘red flags’ that may call up an audit.
A tax code calculator will check across all income sources which affect tax bands and each type of income is then calculated within that band until it is all used up within that band. In other works, this type of calculation adjusts the tax calculation based on total income.
Whether you are preparing for filing of taxes or are trying to get an estimate of what you may owe in order to set money aside to make payments when self employed, a tax code calculator is an invaluable tool. Since the codes are already programmed into the software, by plugging in a few key numbers the results are calculated with amazing accuracy.
Never has getting ready for the tax man been as easy as with an online British tax calculator. Whether you need just a simple tax calculator to compare jobs or a tax code calculator to help amalgamate more than one job to be ready for filing returns, these neat little online software programs are quite accurate and better yet – free.