Annual Surplus forecast 2014-2015 Forecast income based on a daily rate of £200 or hourly rate of £25 £200 x 200 working days = £40,000 £40,000 minus business annual expenses = £8,300 – £31,700 net profit £31,700 minus £8,485 = £23,215 Business surplus
Annual Statutory Deductions Income tax deductions Profits of £8,485 (psb) Plus £23,215 (business surplus) = £31,700 net profit First £8,105 of profits is income tax free (PTA) £31,700 minus £8105 = £23,595 Annual percentage at 20% = £4719
National Insurance Contributions Class 2 National Insurance (NI) £138 (£2.65 per week x 52) Class 4 NI £1,116 (9% of profits over £7,605) (Class 4 NI - £31,700(net profit) minus £7,605 = £24,095 9% of £24,095 is £2,168.55)
Total Deductions £4719 (Annual Income Tax ) + £138 (C2 NI) + £2,168.55 (C4NI) = £7,025.55
Annual Surplus (£23,215 business surplus minus £7,025.55 (total statutory deductions) =
£16,189.45