How to Keep on Top of your Taxes

janecraddock-newBy Jane Craddock, NO HANDS Master 

This is how I calculate and save for my annual tax bill.  It works for me, so it might just work for you!  It has certainly saved me from that nasty shock at the end of a successful work year.

My old and wise accountant used to tell me “In the world we live, we have to pay tax, it is the law.  But we don’t have to pay interest unless we choose to take out a loan that carries an interest rate.”  It is a phrase I try very hard to live by!
Here’s what I do…………
Step 1 
Take the annual tax free allowance (currently £10800) divide it by 12  i.e. £10800 divided by 12 equals £900.
£900 is the amount I can earn (takings) each month before I have to pay tax.
Step 2
Anything I earn above £900 I multiply by 30% to find out how much I should put aside for my tax bill for that month.
For example during November I earned £1200.00  –  £1200.00 minus £900 equals £300
£300 multiplied by 30% equals £90
For the month of November I set aside £90 to cover my tax and national insurance as a basic rate tax payer for that month.
I repeat this for every month that I earn more than £900.00.  It is a very basic method, and doesn’t allow for business expenses that can be offset against the tax bill.  I leave the accountant to work that out, after all I am not a tax expert, I am just someone trying to balance the books and avoid a surprising tax bill at the end of the year!


Jane Craddock is a NO HANDS Clinical, Supervising and Examining Master working from her clinic in Bracknell. She has been on the trainer team for a host of Company courses as well as supporting Association members through Master Support Sessions and personally in too many ways to list!

Comments ( 8 )

  • Teresa Bovingdon

    Wow thank you Jane that is a fabulous nugget of information so simple and easy to understand.

  • Miranda Davis

    Simply wonderful! Thank you xx

  • Angela Dean

    I love this. Thank you Jane x

  • Cathy ward

    Very helpful, thank you. Xx

  • Ailia Barnwell

    Great advice from Master Jane x

  • Wendy Mills

    Fantastic advice as always.

  • Sandra Morris

    Thanks Jane for your always valued advice xx

  • Barbara Selfridge

    Only just come across this through a link from the Newsletter! I have just completed my tax return and am feeling quite pleased with myself and yes a bit shocked at what I have to pay!! I love the simplicity of this and will definitely use it in future,
    Thank you Jane. xx

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