When entering your information on to SimpleTax all calculations are automatically done and you can consult all specific items on the "Report" feature. Still, all those "tax words" can be scary and you might not be quite sure what you are looking at. Don't worry, we are here to help!
SimpleTax Report Glossary:
Taxable Income: This is your total income for tax purposes. It may be slightly higher than you expected if you have income that is taxed at source, such as interest, dividends, and income under the Construction Industry Scheme (CIS). This will be included in the total in full, including the tax element. The income from your business may be higher than expected if you have expenses that include a personal element, or capital expenditure that can't all be claimed back in this tax year.
Final Tax Rate: This is your overall income tax and NI liability, shown as a percentage of your total taxable income.
Total Tax Due: When due, it's the sum of your income tax liability and NI Class 4 contributions. When reclaimed, it is the total amount of the tax rebate you will get.
Tax Liability: Tax liability is the amount of tax due on the income received, less the allowances and deductions you are claiming.
Tax Already Paid: This is the tax already paid on account, or deducted at source (PAYE, dividends, interest, CIS).
Total Tax Reclaimed: When due, it's the sum of your income tax liability and NI Class 4 contributions. When reclaimed, it is the total amount of the tax rebate you will get.
Tax Rebate Amount: 31 January is the deadline for paying your Tax Liability, your NI Class 4 Contributions, and the first of your two payments on account for next year. If you are getting overpaid tax refunded, this is the final amount.
Class 4 NI Contribution: Your Class 4 National Insurance Contributions for this tax year.
Total Payments on Account: Payments on account are advance payments of next year's tax. They are paid to HMRC in two instalments – the first with your tax return by 31 Jan, and the second by 31 July. The amount is based on the assumption that your income will be the same next year. If you think your income will be lower you can apply to reduce the payments. This option is available during the submission process.
Tax to be paid by 31 Jan: 31 January is the deadline for paying your Tax Liability, your NI Class 4 Contributions, and the first of your two payments on account for next year.If you are getting overpaid tax refunded, this is the final amount.
Payment on Account by 31 July: 31 July is the deadline for your second payment on account, and this is the amount due to be paid by that date.
Other Keywords: calculation; balance; outline; computation; total;