Arrow Social & Financial Consulting Ltd

29/03/2025

29/03/2025

📊 I am pleased to share the financial update for the 2024-2025 tax year in the following examples:

Tax Year 2023-2024:

• Gross Pay: £35,000.00
• Expenses: £5,250.00
• Profit: £29,750.00
• Taxable Income: £17,180.00 (£29750.00-£12570.00=£17180.00)

• Tax to Pay: £3,436.00 (£17180.00*9%=£1546.20)
• NIC Class 4: £1,546.20 (£17180.00*9%=£1546.20)
• NIC Class 2: £179.40 (£3.45*52 (weeks)= £179.40)
• Tax Paid (CIS): £7,000.00
• Tax Refund: £1,838.40 (£7000.00-£3436.00-£1546.20-£179.40=£1838.40)

Tax Year 2024-2025:

• Gross Pay: £35,000.00
• Expenses: £5,250.00
• Profit: £29,750.00
• Taxable Income: £17,180.00 (£29750.00-£12570.00=£17180.00)
• Tax to Pay: £3,436.00 (£17180.00*9%=£1546.20)
• NIC Class 4: £1,030.80 (£17180.00*6%=£1030.80)
• NIC Class 2: £179.40 (£3.45*52 (weeks)= £179.40)
• Tax Paid (CIS): £7,000.00
• Tax Refund: £2,353.80 (£7000.00-£3436.00-£1030.80-£179.40=£2353.80)

The calculation above serves as an example and indicates that for the 2024-2025 tax year, we can expect an additional tax refund of £515.40 compared to the 2023-2024 tax year. However, please note that the amount for your calculations may vary; it depends on your profit amount, which could be more or less. HMRC has reduced the National Insurance Class 4 charge for self-employed individuals from 9% in the 2023-2024 tax year to 6% in the 2024-2025 tax year.

National Insurance contributions if you're self-employed - rates and exceptions.

21/03/2025

Most people pay the tax they owe. 💷

For those that don’t, we publish a list of names of those who deliberately defaulted on their tax obligations.

Today we have refreshed that list. ⬇️

https://www.gov.uk/government/publications/publishing-details-of-deliberate-tax-defaulters-pddd/current-list-of-deliberate-tax-defaulters?&utm_source=f.co_hmrcgovuk&utm_medium=social&utm_content=pddd