How your Income Tax estimate works

Your income tax estimate in Sage Accounting helps you plan ahead by providing an idea of your potential end-of-year tax liability. This feature is part of our income tax beta submission.

How it works

HMRC calculates your end-of-year tax estimate based on the information you provide. This includes:

• Income from all your sources
• Additional personal income
• Relevant tax adjustments and allowances

Sage doesn’t calculate your tax. Instead, HMRC processes your submitted information to create the estimate.

Your Personal Allowance is one of the allowances HMRC applies. It's the amount you can earn before you pay Income Tax.

For detailed guidance, visit gov.uk/estimate-income-tax.

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Accuracy of your estimate

The accuracy of your tax estimate depends on the completeness and accuracy of the data you submit to HMRC.

Your estimate can be less accurate if you:

• Haven’t included all your income and expenditure data
• Haven’t provided complete tax adjustments or allowance information
• Omit individual income details

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When you pay your tax

Your tax estimate doesn't require immediate payment. Actual tax becomes due only after you complete and submit your final declaration at the end of the tax year.

Remember, this estimate is a helpful planning tool and doesn’t represent your final tax bill.