Self Assessment Countdown: Day 8 - Understanding Your Tax Calculation

With eight days remaining until the Self Assessment deadline, it's crucial to understand and verify your tax calculation. A thorough review ensures accuracy and helps avoid both overpayment and potential penalties.

Essential Elements of Your Tax Calculation

Income Sources

Your tax calculation should accurately reflect all income streams, including:

• Employment income and benefits
• Self-employed business profits
• Property rental income
• Investment and dividend income
• Pension income

Tax Allowances

Ensure all applicable allowances are correctly applied:

• Personal Allowance
• Trading Allowance
• Property Allowance
• Marriage Allowance

Understanding Tax Bands

Your income is taxed at different rates depending on which tax band it falls into:

• Basic rate (20%)
• Higher rate (40%)
• Additional rate (45%)

National Insurance Contributions

For self-employed individuals, verify both:

• Class 2 NICs (flat rate)
• Class 4 NICs (percentage-based)

Payments on Account

Understanding payments on account is essential:

• Whether they apply to your situation
• How they're calculated
• When they're due

Common Areas to Check

Key areas where errors frequently occur include:

• Incorrect tax codes
• Missing allowances
• Duplicate income entries
• Miscalculated expenses

Need Professional Support?

If you're unsure about any aspect of your tax calculation, our Gravesend-based team at MCC Partners can help. We provide expert guidance to ensure your tax return is accurate and optimised. Contact us at 01474 619 990 or email This email address is being protected from spambots. You need JavaScript enabled to view it. for professional assistance.