Use our Self-Employed Tax calculator to estimate your take-home income and National Insurance Contributions (NICs) to plan your budget and cash flow.
Take home with sole trader
Income Tax £0.00
Class 2 NI £0.00
Class 4 NI £0.00
Net Liability £0.00
Take-home £0.00

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Enter your annual income. Exclude expenses and VAT.

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Specify tax year.

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For easy comparison, the calculator automatically generates your estimated take-home income for both options simultaneously.

The calculation is based on the assumption that you are entitled to claim a personal allowance and earn a tax-efficient salary.

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Self Employed Tax Calculator

What does self-employed mean?

You do not work for an employer if you are self-employed. You work for yourself and run your own business. Self-assessment is used to pay taxes, and there is no paid vacation or sick leave. It means you are fully responsible for the outcome of your business in terms of taxation and employment legislation.

It occurs in various occupations, but one common thread is that self-employed people are usually highly skilled in one field.

What is a self employed tax calculator?

You'll pay income tax differently than employed persons if you're self-employed because it's based on profits rather than gross income and is calculated through a self-assessment tax return.

Allowable business expenses and allowances are deducted from revenue to determine the taxable profits. You can offset any losses carried over from prior years. The resulting amount of profit is what the business will be taxed on.

How does a self employed income tax calculator work?

Calculate your take-home pay after business expenses and income tax using the self-employment tax calculator UK

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Fill in your gross annual income in the self-employed calculator. If your revenue changes, taking an average over a few months and extrapolating over a year is the best option.
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Calculate and enter all of your allowable business expenses.
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Uk self employed tax calculator will determine your profit before tax and the expected amount of income tax and national insurance due.
Do I need to register as self-employed?

You must register with HMRC for a self-assessment tax return if you're self-employed. But how do you know whether you're self-employed?

A general rule of thumb is that you are considered self-employed if you run a business and take responsibility for its success or failure.

If you meet these requirements, you should probably register as self-employed.

When do I need to register as self-employed?

You should register as soon as possible, according to HMRC. However, there is a time limit. You must legally register by 5 October after the end of the tax year in which you became self-employed.

For instance, If you began your firm in July 2021, you must register with HMRC by 5 October 2022.

How do I register as self-employed?

Self-employment registration is simple. Enter your email address in the government's online registration portal.

After that, you must complete the registration process. HMRC registration is quick and straightforward, but here's a rundown of some of the information you'll need to provide:

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the year you founded your company
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basic personal information, such as your National Insurance number and home address
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details about your profession

HMRC will issue a letter with your 10-digit Unique Taxpayer Reference number once you've enrolled. HMRC will also create an online account for you, which will grant you access to a variety of digitized government services.

This part of the procedure usually takes seven to ten days, but you can call HMRC for an update if it takes longer.

How much tax will I have to pay as a self-employed person?

Employees' taxes are deducted at source via the PAYE system, whereas self-employed individuals must calculate, submit, and pay their taxes.

You must notify HMRC of your self-employment status and file an annual Self Assessment tax return. You must pay your taxes and make any necessary NI contributions.

Taxes are complicated, and you may be required to make various payments depending on the type of business you run:

Income tax and NIC

You'll determine and pay your income tax and national insurance contributions using your annual Self Assessment Tax return.

Income tax and NI rates vary

VAT

Once you've registered for VAT, you'll need to use software to submit VAT returns.

What key dates do I need to remember?

When it comes to taxes, there aren't many dates to remember. The following are the most important to consider:

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The tax year commences on 6 April and ends on 5 April of the following year. It means you have about 10 months to prepare your return for the preceding year if you file it online and 7 months if you file a paper return.
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if you haven't already done so, The deadline to register as self-employed is the 5 October
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The deadlines for submitting paper returns for the prior tax year are 31 October and 31 January, respectively.
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Pay the tax you owe by midnight on 31 January following the end of the tax year. For instance, The payment date for the 2021/22 tax year will be 31 January 2023.
Can I pay self-employed taxes monthly?

No, in a nutshell. Self-employed people can pay their taxes twice a year, whereas employees' taxes are paid monthly under pay-as-you-earn (PAYE). However, there is one drawback to this.

Frequently Asked Questions

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