Self-Employed Tax Return Calculator
It’s always tricky to figure out how much tax you owe. Submitting your tax return has been made slightly more complicated during the global pandemic, where new grants have been introduced, and most of them are taxable! That said - worry not, APARI is here to help with our free COVID-19 Self-Employed Tax Return Calculator!
The COVID-19 Self-Employed Tax Return Calculator helps you to estimate the amount of tax you could owe on the money received from the Self Employed Income Support Scheme (SEISS) grants - meaning that you are prepared for when your tax liability is due! What this means is that, through using our COVID-19 Self-Employed Tax Return Calculator, you can more reliably plan your tax payments in these uncertain times.
Although we’ve made the calculator super easy to use, we have also put together a manual on how to use our COVID-19 Self-Employed Tax Return Calculator below along with additional information on SEISS grants in general.
Start using our COVID-19 Self-Employed Tax Return Calculator
To start off, input your figures into the COVID-19 Self-Employed Tax Return Calculator below for your estimate.
*please note that the calculator is intended as a guide - the exact tax owed will calculated on your tax return.
How to use APARI’s COVID-19 Self-Employed Tax Return Calculator
Because of COVID-19, millions of self-employed workers in the UK have claimed the Self Employed Support Scheme (SEISS) grant. The scheme has been a huge success, supporting self employed taxpayers through a really difficult period. However, one major issue is that the scheme is paid gross - so the SEISS grant income you have received is taxable.
That is where our COVID-19 Self-Employed Tax Return Calculator comes into play!
Using Our Calculator
Our Covid-19 Self Employment Tax Return Calculator shows you the taxable amount you have to pay from receiving the SEISS grant. To calculate the tax you owe, you have to populate the following fields in our COVID-19 Self-Employed Tax Return Calculator:
Employment Income - Enter the amount earned from your employment during the 2020/21 tax year.
Self-Employed Income - Enter the amount earned from your self-employment during the 2020/21 tax year.
Covid Grant - Enter the amount received through the Self Employed Income Support Scheme (SEISS) during the 2020/21 tax year.
Income Tax Payable - The amount of income tax owed.
Class 1 NIC (National Insurance Contributions) - Amount of money deducted for National Insurance, usually paid for by your employer.
Class 2 NIC - National Insurance for self-employed people earning more than £6,475 a year (If you earn below this amount you can make a voluntary payment, to ensure you qualify to receive state benefits such as the state pension)
Class 4 NIC - National Insurance charge for self-employed people earning profits of £9,501 or more per year
The information you will receive includes the Total Tax Payable. The Total Tax Payable is your guide tax bill for the 2020/21 tax year. This will give you an insight into what you need to set aside for your tax return. That said, it is important to keep in mind that the COVID-19 Self-Employed Tax Return Calculator is intended as a guide. The exact tax owed will be calculated on your tax return.
Not only is our COVID-19 Self-Employed Tax Return Calculator quite straightforward to use, but we can also provide you with additional information that might be useful for your tax return calculations. The more you know the better.
Self Employed Income Support Scheme (SEISS)
A huge number of self-employed people were given the opportunity to apply for grants through the Self Employed Income Support Scheme (SEISS) during the Coronavirus pandemic.
SEISS grants were paid as a percentage of previous years’ average monthly income, as calculated from previous tax returns, and were released in batches throughout the past year.
Yet, while these grants were a lifeline for many self-employed people, they were paid gross - i.e. before tax. That means that self employed tax payers are expected to show the grant money received on their 20/21 tax returns and, you guessed it, pay tax on the money received.
Following the Spring Budget announcement, these Covid grants have been extended, with a 4th and 5th grant announced, stretching to September 2021, which means your 21/22 tax return could also include Covid Grant Income!
That might sound a bit complicated, but our COVID-19 Self-Employed Tax Return Calculator provides you with an estimation of how much tax you have to pay on SEISS. If you want further information on how SEISS will affect your tax return, click here.
Why we developed the COVID-19 Self-Employed Tax Return Calculator
Let’s address the elephant in the room - COVID-19 has impacted all of our lives, and not in a good way. We have all had to face some tough times and so can only imagine what other people had to go through.
We know how tough it was for many self-employed people at the beginning of the pandemic and many are still struggling to get their feet under them to this day. While we can’t just magically turn life back to normal, there is one specific thing we are quite good at: Making Tax Doable.
Helping people with tax is kind of our thing. So when we started to think about a way we can support our fellow tax payers, the COVID-19 Self-Employed Tax Return Calculator came to our mind. Our goal is to help you to clarify the taxable elements on grants the government developed to help you.
We know the COVID-19 Self-Employed Tax Return Calculator will not solve all of the problems created by the pandemic, but we hope it makes it a little bit easier dealing with it. To a better future!
Government support during COVID
SEISS is just one of several programs the government designed to help people and companies to cope with a global pandemic. If you want to know more about furlough or the Bounce Back Loan Scheme, click here.
Want to know more about self-assessment? We created the Ultimate Guide to Self-Assessment Tax Returns for YOU!