Self Employed Tax Calculator
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How Self Employed Tax Calculator works?
⦿ Input your total gross pay for the year, including extras like overtime and bonuses
⦿ The calculator will display your National Insurance contributions (NICs) for the year, month, week, and day, with a detailed breakdown.
Take Home After Tax
| Yearly | Monthly | Weekly | Daily |
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Working for yourself and the tax you’ll owe
Freelancing has exploded as apps, cloud tools, and fast broadband let people earn a living on their own schedule and terms. But freedom from a 9-to-5 also means you become your own payroll department. One of the first admin jobs is understanding – and budgeting for – the tax you’ll have to pay.
What counts as “self-employed tax”?
If you generate income in the UK outside PAYE – whether by selling goods, providing services, or running any other commercial venture – you pay:
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Income Tax on your taxable profit
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National Insurance contributions (NICs) once your profit passes certain thresholds
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VAT if your turnover exceeds the registration limit (currently £90,000 in a rolling 12-month period)
Both Income Tax and NICs are calculated on a sliding scale: the higher your profit, the higher the marginal rate that applies to the slice in that band.
Income-tax bands
2024-25
| Band | England, Wales, N. Ireland | Rate | Scotland | Rate |
|---|---|---|---|---|
| Personal allowance | Up to £12,570 | 0 % | Up to £12,570 | 0 % |
| Basic / Starter | £12,571–£50,270 | 20 % | £12,571–£14,876 | 19 % |
| (Scot.) Basic | – | – | £14,877–£25,561 | 20 % |
| Int. / Higher | £50,271–£125,140 | 40 % | £25,562–£43,662 | 21 % |
| Advanced | – | – | £43,663–£75,000 | 42 % |
| Additional / Top | Over £125,140 | 45 % | £75,001–£125,140 | 45 % |
| — | — | — | Over £125,140 | 48 % |
2023-24 (for comparison)
| Band | England, Wales, N. Ireland | Rate | Scotland | Rate |
|---|---|---|---|---|
| Personal allowance | Up to £12,570 | 0 % | Up to £12,570 | 0 % |
| Basic / Starter | £12,571–£50,270 | 20 % | £12,571–£14,732 | 19 % |
| (Scot.) Basic | – | – | £14,733–£25,668 | 20 % |
| Intermediate | – | – | £25,669–£43,662 | 21 % |
| Higher | £50,271–£150,000 | 40 % | £43,663–£125,140 | 42 % |
| Additional / Top | Over £150,000 | 45 % | Over £125,140 | 47 % |
Note: Your personal allowance falls by £1 for every £2 you earn over £100,000.
National Insurance for sole traders
From 2024-25 the old Class 2 charge has been abolished. You now pay only Class 4 NICs on profits:
| Profit bracket | 2024-25 rate | 2023-24 rate |
|---|---|---|
| £0 – £12,570 | 0 % | 0 % |
| £12,571 – £50,270 | 6 % | 9 % |
| Over £50,270 | 2 % | 2 % |
Late-filing penalties
| Delay | Initial fine |
|---|---|
| Up to 3 months | £100 |
| 3–6 months | £100 plus daily £10 (max £900) |
| 6–12 months | Above plus 5 % of tax due or £300 (whichever is higher) |
| 12+ months | Up to 100 % of unpaid tax in serious cases |
Can’t pay on time? Contact HMRC before the deadline to set up a “Time to Pay” plan and avoid extra charges.
Using a self-employment tax calculator
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Enter gross annual income – everything you bill, including tips, overtime-style extras and bonuses.
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Input allowable expenses – travel, office costs, insurance, professional fees, marketing, a home-office share of utilities, and so on.
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The calculator deducts expenses, applies the correct Income-Tax bands and Class 4 NIC rates, and shows your net profit and take-home pay.
Record-keeping and Self Assessment essentials
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Keep all invoices, receipts and bank statements. Good bookkeeping software or a simple spreadsheet patched with bank feeds will save hours.
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File online by 31 January following the end of the tax year (paper returns are due 31 October).
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Your ten-digit Unique Taxpayer Reference (UTR) appears on any Self-Assessment letter from HMRC – you’ll need it to log in and pay.
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Made a mistake? You have up to 12 months after the 31 January deadline to amend the return online. Beyond that, write to HMRC explaining the error.
Pensions for the self-employed – worth it?
Yes. Unlike employees you get no auto-enrolment, but:
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Contributions still attract tax relief (you pay £80, HMRC tops it up to £100 if you’re a basic-rate taxpayer).
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Pension pots grow free of Income Tax and Capital Gains Tax.
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You can still draw 25 % tax-free from age 55 (rising to 57 in 2028).
Setting up a personal or stakeholder plan is straightforward, and many providers let you vary payments when cash flow is lumpy.
Cutting your tax bill legitimately
| Strategy | How it helps |
|---|---|
| Claim every allowable expense | Only profit after expenses is taxed. Keep digital copies of receipts. |
| Use “simplified expenses” | HMRC flat-rate mileage or home-office rates can be quicker than full apportionment. |
| Pension contributions | Reduce taxable profit; boost retirement savings. |
| Capital allowances | Deduct the cost of equipment, tools, and machinery. |
| Annual investment allowance | Up to £1 million of qualifying purchases can be written off immediately. |
Bottom line
Working for yourself means wearing two hats: entrepreneur and tax officer. Get into the habit of setting aside a percentage of every invoice for tax, track expenses meticulously, and use a calculator (or accountant) to avoid surprises on 31 January.
