Sole trader tax calculator explained properly
All self-employed people need a way to work out how much to set aside from their earnings for tax and national insurance.
For someone in paid employment, this is done by their employer, using the PAYE scheme.
But sole traders have to work this out for themselves. There are calculators available online, but most of these just ask the self-employed person to estimate how much they’re going to earn over the year, and work out how much tax they’d be liable for by averaging it evenly over twelve months.
That may be OK if your self-employed income is stable over the year, but for most sole traders both their earnings and their business expenses vary from one month to another.
Triginta’s tax calculator is different
Triginta’s tax calculator is different because it gives you a monthly figure bases on your actual earnings and expenses, not just an estimate for the year as a whole. It takes account of how your income and expenses vary from one month to another, and of how much of your allowances and tax bands you’ve used up.
The Triginta calculator ensures you set aside the right amount each month, and you don’t have to worry about nasty surprises at the end of the year. It takes the guesswork out of your tax affairs.
As well as helping you manage your tax and NI, the calculator gives you a clear picture of how your self-employed finances are developing over the year, with all your key financial figures shown on an easy-to-follow dashboard.
When it comes to the end of the tax year it is easy to transfer the figures into your self assessment return.