Understanding your MTD tax calculation

untied has a built-in tax calculation for each tax year, in summary at the top of the screen and by clicking on tax breakdown.

Completed years

For years that have been completed this users totals, with full year allowances based on HMRC rates.

Current year

We have experimented with different ways of showing this in the current year, but have settled on using year totals ... so if you have a personal allowance of £12,570 and have taxable income of £12,500 it will show no tax is due (since your taxable income is less than the personal allowance).

Also bear in mind that figures for the current year this is indicative only (generally using the logic for the previous year - we do this because we've found that there have been in-year changes from government so wait until we get HMRC confirmation towards the end of the year before finalising our code and logic).

If you are in MTD

If you are in MTD, HMRC also carries out tax calculations but uses slightly different logic. These appear in untied under the MTD section - this is their data not ours. The key thing to note is that they spread the personal allowance (and the rate bands) over the year according to the date of your most recent update.

Underneath this you will see a breakdown that is tailored to whatever your income sources are. It will show how the allowances have been allocated (which should be in the most advantageous way for you).

You will also see an amount for "Total income tax and nics due". This is neither an amount due, nor a total for the year. Rather it is an indication of of tax on what you've earned so far this year, if your personal allowance were spread evenly.