Looking for a Good Tax Calculator for 24/25

[Untouchable1]

Hi everyone,

I’m trying to get a better handle on my finances for the 24/25 tax year and was hoping someone could recommend a good tax calculator or tool that covers the following:

• Helps me estimate how much tax I should set aside.
• Allows me to model splitting my income between PAYE and dividends.
• Lets me factor in personal pension contributions to ensure I stay under the higher rate threshold (to minimise CGT).

For context, I’ve been employed, self-employed, and I’m currently working through a limited company contract, so I need something flexible enough to account for these different income sources.

Any suggestions would be greatly appreciated!

Thanks in advance! 😊

[WTFH]

I'd suggest speaking to and paying for a qualified accountant, because no free modeller is going to be able to go through the three different scenarios. They will need to look at how much you earned and paid tax on in your employment and then add the other sections on top.
For example, if you earned over £50,270 before tax in your employment, then you're going to be paying 40% on any salary you have taken since then and 33.75% on any dividends.
I note that in your other thread you say you earned £38k when self employed, but you didn't mention there was also permanent employment as well.

As for "setting tax aside", that needs to be out of your personal money, not company money. Yes, your company pays corporation tax, etc, but it is you that is responsible for your income tax.

An accountant is what you need.

[Untouchable1]

I'd suggest speaking to and paying for a qualified accountant, because no free modeller is going to be able to go through the three different scenarios. They will need to look at how much you earned and paid tax on in your employment and then add the other sections on top.
For example, if you earned over £50,270 before tax in your employment, then you're going to be paying 40% on any salary you have taken since then and 33.75% on any dividends.
I note that in your other thread you say you earned £38k when self employed, but you didn't mention there was also permanent employment as well.

As for "setting tax aside", that needs to be out of your personal money, not company money. Yes, your company pays corporation tax, etc, but it is you that is responsible for your income tax.

An accountant is what you need.

Appreciate the input. I have an accountant, I just like to do these things myself

[malvolio]

Appreciate the input. I have an accountant, I just like to do these things myself

And that's fine, as long as you are as well informed as your accountant...

All the taxation rules and levels are on the HMRC website. It's probably safer to work the numbers out for yourself rather than rely on a generic model that takes no account of days worked, other incomes, pension planning, war chest management and the rest.

[hobnob]

I use Excel to do my tax calculations. You can work out how much you owe in tax so far, and then run through a few scenarios to predict how much you would pay in each one.

[northernladuk]

There isn't such a thing as a good one. We've been asked this for years and still one hasn't popped up. There are plenty out there that allow you to put a day rate and sometimes the odd bit of extra info but we've already ascertained they are good for an idea but useless for any detailed planning. Very few of them ask about tax codes, expenses, pension and other elements that will affect the outcome and those that answer either get their accountant to do them or have their own spreadsheets they've tried and tested.

Admirable that you want to do it yourself but personally I'd say misguided. You pay a professional to do this for you. As a company owner that is you doing it if you get me. You've employed the correct method to do it properly. I don't see how a half arsed attempt to do it yourself is a good idea but that's just me.

So IMO, get your accountant to do it for you. It's their job and they are paid to do it. When you've got it then try understand it and build your own spreadsheet for next year if you want but trying to rely on something you don't know to do something you don't know about isn't a good idea.

[northernladuk]

Oh, and in the new world I wouldn't be putting too much time and effort in to re-learn this. My view is I'll get an outside gig from time to time now, inbetween inside gigs as the norm so I'll be spinning the usual stuff up for the outside gig and just off loading the job lot to the accoutants. Not worth re-learning it all again for the odd 6 month gig.

[Untouchable1]

My account came back with "Yes, it will still be worthwhile. The £1,047.50 is a tax-deductible expense for corporation tax purposes. This represents the most tax-efficient salary for a company director."

I struggle to believe this is true....

[northernladuk]

My account came back with "Yes, it will still be worthwhile. The £1,047.50 is a tax-deductible expense for corporation tax purposes. This represents the most tax-efficient salary for a company director."

I struggle to believe this is true....

So ask them why and to break it down for you. You'll learn something while they do. Also go back to them point out that's for a clean year but yours isn't and furnish them with the details. It's efficient for a full year on that but not for a part year. It is in the ballpark of what it's always been when we were all outside if that's what you mean though.

[jamesbrown]

My account came back with "Yes, it will still be worthwhile. The £1,047.50 is a tax-deductible expense for corporation tax purposes. This represents the most tax-efficient salary for a company director."

I struggle to believe this is true....

Sounds right to me, in general, because the marginal saving in CT is somewhere between 19% and 26.5% as a tax deductible expense, whereas the additional ErNI is 15% from April 6 (on any salary above £5000). If your company is eligible for the employment allowance, then the extra ErNI can be mitigated, of course, but that won't apply unless you have two or more employees or directors.