Why is it useful?
Your Self Assessment tax estimate provides an indication of what to set aside for both Income Tax and National Insurance.
Self-employed sole traders must submit a Self Assessment tax return by 31 January and pay any tax due. This covers the previous tax year period (ending 5 April). Your Tax estimate in the app estimates the Income Tax and National Insurance you owe HMRC. You'll need to set aside enough money to pay any taxes when they are due.
Who does the estimate work for?
The estimate works for self-employed sole traders. We do not currently support estimates for CIS contractors, furnished holiday lettings or UK property businesses.
Where to find it in the app?
You can check your Tax estimate by following these steps:
1. Open the Countingup app and tap the 'Accounting' tab at the bottom of the screen
2. Tap 'Tax estimate'
Tax estimate assumptions:
- This tax estimate is based on your profit to date. It assumes you'll continue to earn at a consistent rate throughout the rest of the year.
- This tax estimate only takes into account the business income and expenses captured by the app (from transactions through Countingup).
- The calculation of your profit is based on traditional (“accruals”) accounting and not cash accounting (eg. based on the invoice or bill date rather than cash exchanged date).
- You receive the standard Personal Allowance. It is the amount of income you do not have to pay tax on. Your Personal Allowance goes down by £1 for every £2 that your adjusted net income is above £100,000. Visit gov.uk to learn more.
- You have no balancing payments.
- You don't receive or pay back a student loan.
- You have not carried forward losses from prior tax years (carried forward losses would typically reduce your tax bill).
The tax estimate is based on the data provided by the government to determine Income Tax rates and allowances and National Insurance rates. Visit gov.uk for more information about Income Tax rates and allowances or National Insurance rates for the current tax year.