Tax advice
Last updated
Last updated
Please note, I'm by no means an accountant so take this information with a pinch of salt.
If you've had a job I'm sure you know all about tax and national insurance (the bane of everyone's lives). Furthermore, I would 100% recommend a conversation with an accountant if you get into flipping! Regardless of how much you make, you will still have to declare this, even if you don't need to pay tax on it.
As you can see below, by default everyone gets a £9,568 National Insurance (NI) allowance. This means you would pay no NI up to £9,568, from thereon after till £50,270 you pay a standard 12%.
Salary: £20,000 Tax Allowance: £9,568 Tax amount: £20,000 - £9,568 = £10,432 Tax to pay: £1,251.84
As you can see below, by default everyone gets £12,570 tax free allowance. This means that you will pay no tax on anything up to £12,570 please see the example below:
Salary: £20,000 Tax Allowance: £12,570 Tax amount: £20,000 - £12,570 = £7,430 Tax to pay: £1,486.
