NB  This page contains an ActiveX control which will also download VB support files from the Microsoft web site. This takes a little time the first time you download it.

Notes

To calculate Income Tax for a particular income level, enter the amount in the 'Gross ' box and move the cursor to another box with the mouse. Income Tax for that income level will be calculated and displayed.
When the form first opens, it will show the current tax year and the emergency code for that year. Both the tax year and the tax code may be changed to show the effect of different circumstances.

If you enter an amount in the salary box, NIC will be calculated on that proportion, both the employee's contribution and the amount payable by the employer. The reason that both are shown is that this transaction has been taken from Independence for Freelance People, our new package. It is intended to help people who run their own company to decide the best split between salary and dividends.

If you find that you get the wrong results for particular cases, please advise us.

Soon you will be able to try out the IR35 Illustration too.

Tax Codes

Tax codes are issued by your Inspector of Taxes to be used in monthly or weekly pay calculations. They are usually numeric with a numeric suffix or, less commonly a prefix . An example is the emergency code for 2000/01 which is 438L; this represents a single person with allowances of £4389. Other valid suffices are ''A', H', 'L', 'P', 'T', 'V' and 'Y'. Their main use is for adjustment by an employer at the beginning of the tax year when all the allowances are changed after Inland Revenue have just sent out codes for the new Tax Year.

The most common prefix is 'K' which means that the amount represented by the code has to be added to the income rather than subtracted before tax is calculated. Even worse is a 'D0' code which means that you have to pay the highest rate of tax on your entire income.

'BR' means paying the basic rate on your whole income, while 'NT' means you pay no tax at all