Higher rate sole trader tax calculation seems to be wrong i.e. not taking personal allowance into account correctly…
I’ve referred this to our accountant, I couldn’t see any issues when I checked. Do you have any specifics?
NET Profit from P&L [view]
£70,086.42 CR
Add backs
£0 CR
Deductions
£0 DR
Adjusted Taxable Profit
£70,086.42 CR
Taxable at personal allowance (0 - 10000 @ 0%)
0.00
Taxable at basic rate (10,001 - 31,865 @ 20%)
4,373.00
Taxable at higher rate (31,866 - 150,000 @ 40%)
15,288.57
Est. Total Income Tax
19,661.57 CR
this should look like this
NET Profit from P&L [view]
£70,086.42 CR
Add backs
£0 CR
Deductions
£0 DR
Less Personal Allowance £10,000.00
Income on which Tax is due £60,086.42 CR
Taxable at basic rate (0- 31,865 @ 20%)
£6,373.00
Taxable at higher rate (31,866 - 150,000 @ 40%)
£11,288.00
Est. Total Income Tax
£17,661.00 CR
Thank you for the details, we’re looking into this now. I do however concur with your findings.
A fix should be ready this afternoon.
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No problems thanks Glen