Tax Related Topics

[Ana_X]

Really confused on this one, when i declare my income with adultwork, do i say what the total i earned before the 41 percent stoppages or just say what the total i got in my bank after the 41 percent. hope that made sence thanks

If you're taking everything which lands in your bank account as a wage then 30% of it should be put aside for income tax and NI contributions, the other 70% is yours to spend.

However, if say £500 lands in your account and you pay yourself a fixed weekly wage things work differently. Say you want £250 as a wage, after taking off 30% for tax and NI on that you would then have £175 cash in your purse, and £75 put away for your tax bill.

That leave you £250 still in the bank which hasn't yet been touched. It's up to you if you take it as a wage (not forgetting to take off that 30%) OR if you're going to use it for the business i.e, things you need to have in order to work. There is tax to pay on business profits at the end of the year too - and that's where I'll stop talking because this part confuses the f*ck out of me and that's why I pay an accountant :p