How to read your personal tax estimate
The Personal Tax page shows how much tax you are likely to owe on your own income for a tax year (6 April one year to 5 April the next). It adds up your salary and your dividends (the share of company profit paid to you as a shareholder), works out the tax, and tells you what to pay and when. This guide shows you how to read it and how to add any income you have outside your company.
It is an estimate to help you plan. It is not your tax return, and nothing on this page is sent to HMRC (the UK tax authority).
Where the figures come from
You'll find the page under Taxes > Personal Tax. We fill in two figures for you, from records you already keep in Mighty:
- Salary is the yearly salary set up for you in payroll.
- Dividends is the total of the dividends declared to you in Mighty with a payment date in this tax year. To add or change one, select Manage dividends.
Everything else is yours to add: a second job, rent from a property, interest from savings, and so on. We can only include what we know about, so the estimate is as complete as the information on the page.
Actual and Forecast
The two tabs at the top right show the same page in two ways:
- Actual is your position from what has really happened so far.
- Forecast is Actual plus anything you plan to receive or pay later in the year. The page opens on this tab.
The tab you are on when you add income matters. Income you add on Actual counts in both tabs. Income you add on Forecast gets a Planned tag and counts in the Forecast only. So add income you have already received from the Actual tab, and use Forecast for income you expect.
To plan a future dividend from your own company, see how to plan how much dividend to take.
Income from outside your company
Select Add income and choose the type that fits. Each one asks for a few figures only:
| Type | Use it for |
|---|---|
| Employment income | A job with another employer. Enter your pay before tax, the tax already taken off it, and the value of any benefits such as a company car. Your P60 or payslips show these figures. |
| Untaxed interest | Interest from savings that was paid to you without tax taken off. |
| Property income | Rent you receive, and the costs of letting the property. |
| Self-employment profit | Profit from work you do as a sole trader, outside your company. |
| Personal pension | Money you pay into a pension yourself, not through your company. This lowers your tax, so it shows with a Relief tag. |
| Gift Aid donation | Donations to charity made under Gift Aid. These also show with a Relief tag. |
| Child benefit | The Child Benefit you receive. We use it to check whether the High Income Child Benefit Charge applies (a tax charge that claws back Child Benefit when your income is over £60,000). |
| Other dividends | Dividends from another company, or from shares you hold. |
Each line you add shows a short note under it, so you can see how we used your figures. An employment line shows Tax deducted, which is the PAYE tax (tax your employer takes from your pay and sends to HMRC) you entered. A property line shows your rents less your costs. If you own a property with someone else, enter only your share.
To change a line, select the pencil next to it. To remove it, select the bin.
Student loans and payments on account
The Tax adjustments card covers two things that change what you pay.
Student loan. If you are repaying a student loan, part of the repayment is collected with your tax. Answer Yes to the question on the card, then choose your plan. Your plan is shown in your student loan account on GOV.UK.
Payments on account. These are advance payments towards your tax bill, which HMRC asks for on 31 January and 31 July when your last bill was over £1,000. If you have already paid them for this tax year, enter the amounts so we can take them off what you still owe. If you filed your last tax return through Mighty, we fill these in for you, and you can change them. Read more in payments on account explained.
Reading the tax calculation
The Tax calculation card on the right works from top to bottom, the same way HMRC does:
- Total income is everything added together. Select it to see each source.
- Less personal allowance takes off the amount you can earn before you pay any Income Tax.
- Income on which tax is due is what is left. The lines under it show how much of it is taxed at each rate. Dividends have their own, lower rates, and the first part of your dividends is taxed at 0%.
- Total tax liability is your tax for the year.
The Tax payments card turns that into dates. It takes off any tax you have already paid through PAYE, then shows what is due on 31 January and on 31 July. If you have paid too much, it shows Repayment due from HMRC instead.
Common questions
Why is my salary £0?
The page shows No payroll for this year when payroll is not set up for you in Mighty for the tax year you are looking at. If your company pays you a salary, ask your accountant to set up payroll. If you are paid by another employer, add it with Add income > Employment income.
Why can I only see myself?
Personal tax is private. Viewing for only ever lists you, even when your company has other directors. Your accountant can see the estimate for each person in the company.
Why did the figures fade for a moment?
Each time you change a figure, we work the estimate out again. The cards on the right fade while that happens and come back when the new figures are ready.
I added income but it has gone
Check which tab you are on. Income with a Planned tag only shows on Forecast. Also check that you selected Save at the bottom of the page before you left it. Changes are not kept until you do.
