contractortaxation.co.uk is a website which has been built to help contractors in the UK to calculate and better understand taxation when operation through a limited company. The website allows the contractor to input several information in the calculator in order to calculate the income, various costs as well as tax that would need to be paid.
When it comes to the income the calculators needs:
- Hourly rate
- Number of hours worked per week
- Number of weeks worked within a year
As for the costs the calculator can use the following:
- Weekly commuting miles (Optional) if set they can be used as costs and thus tax reliefs
- Yearly cost of the contractor’s company accountant
- Yearly cost of liability insurance which most contractors are asked to take out
Finally the calculator can also calculate what needs to be deducted if you still have an outstanding student loan repayment.
Using the contractor tax calculator you can get your several information back such as:
- Net take home income
- Tax that will be paid
- National insurance due
- Student loan repayment if Applicable