UK Tax Calculators

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Wondering how much tax you owe HMRC this financial year, or get your salary breakdown, or wish to estimate your take-home income and company profits? Use our calculators to ascertain take-home pay, tax liabilities, national insurance, employee NIC and more.

Company vs Sole Trader Calculator

If you haven’t decided between establishing as a sole trader or incorporating a limited company, use our tax calculator to compare your take-home incomes as a sole trader versus as a limited company. Determine which operation will prove tax efficient for you.

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Self employed Calculator

If you are self-employed, a sole trader, or a freelancer, you can use our standard calculator to estimate your take-home income, self-employment income tax, and National Insurance Contributions (NIC) to plan your budget and cash flow.

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Ltd Company Calculator

Our calculator will estimate your Corporate Tax Liabilities for the current and previous years, distributable profits for dividends, and profits based on your expenses and annual business income.

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Employee take home salary Calculator

Are you looking to change jobs or just looking at what you will get in your bank account? Use our restructured salary calculator with updated tax rates to check how your annual gross salary impacts annual take-home pay. The calculator helps you take control of your finances when you are applying for a loan or considering mortgages.

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Employer NIC Calculator

If you are a UK business looking to employ people, work out your Employer National Insurance Contributions along with the breakdown when you hire a new employee. Also, determine daily, weekly, monthly, and yearly NICs effortlessly.

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Employee NIC Calculator

Learn how much you need to deduct from your employee’s gross pay towards NIC for the current and previous years and pay to HMRC.

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Employee vs self employed Calculator

Planning to switch your occupation from self-employed to employed or vice-versa and not sure of the taxes you will pay after the switch? Use our reliable and updated tax calculator to estimate your NIC liabilities, income tax, and take-home income.

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UK Tax Calculator

Understanding how Income Tax works in the UK can initially seem confusing. 123Financials' Income Tax Calculator for UK taxpayers is an easy-to-use online tool that allows you to calculate Income Tax and National Insurance (NI) for the current financial year. It will help you estimate whether you are being paid the right salary and budget your income. We have updated our salary tax calculator based on the HMRC changes.

Who should use our Income Tax calculator?

Almost all incomes are taxable. The most common taxable income is the salary and wages you earn. However, you may also need to pay Income Tax on the following incomes:

  • Rent from your tenants
  • Interest and Dividends from investments and savings
  • Business profits

Income tax is charged into different bands. As your income increases, so does your income tax.

Your taxable income is reduced by any allowances you qualify for, like personal allowance.

What is Personal Allowance in the context of income tax?

An allowance is an amount of income you earn without paying any income tax. Personal allowance is the most common type of allowance to which every individual, including students, is entitled. The exact amount for personal allowance varies with each year. For the current financial year 2023-24, the Personal Allowance is £12,570.

In addition to Personal Allowance, there is Marriage Allowance, Child Allowance, and Blind Person's Allowance available to you based on your circumstances.

How is income tax calculated in the UK?

UK chancellor usually sets the income tax rates during the Spring and Autumn Budget. This year, the Income Tax rates are:

Income Income tax band Income tax band name
Up to £12,570 0% Personal allowance
£12,571 to £50,270 20% Basic rate
£50,271 to £125,140 40% Higher rate
Above £125,141 45% Additional rate

You don't pay income tax at the same rate on all taxable income. For instance, if you earned £70,000 in 2023-24, your income tax will be calculated as:

First £12, 570 = No tax

£37,700 (£50,270 - £12, 571) = 20% Tax Rate

£19,730 (£70,000 - £50,270) = 40% Tax Rate

You will get a clearer picture when you use the 123 Financials' Tax Calculator for UK taxpayers.

What is 123 Financials' Income Tax Calculator?

123Financials' UK tax calculator is a simple tool for estimating how much tax you owe. It helps you see how much money you can keep and how much you need to pay in taxes.

Our tax return calculators give you answers for different situations. For example, you can use them to decide whether it's better to start a company or work on your own, compare being a sole trader to being an employee, check what will be your take-home pay when switching jobs, and understand the National Insurance contributions for both employers and employees.

Our self-employed tax calculator tool can help you budget your taxes accordingly if you are self-employed. You may be able to claim a refund if you have exceeded your tax deductions.

If you are a startup founder or finance professional tasked with preparing business forecasts and budgets, use our Employer NI calculator to estimate Employer NIC.

Frequently Asked Questions

Yes—and we're also ICAEW-accredited, which means we meet high standards for ethics, accuracy, and professionalism. All filings, submissions, and reports are delivered correctly and on time. 

Yes, anytime with a 30-day notice period to manage the transition. Business needs evolve, and our service flexes with you. If you're growing, simplifying, or just shifting strategy, your plan can adjust accordingly—no disruption, no penalties. 

Not at all. We support clients across the UK and internationally. Our digital-first setup means location isn't a barrier—you'll get responsive, high-quality service wherever you are.

Nope. No setup fees, no onboarding charges, no last-minute surprises.

We keep our pricing transparent because that's the kind of business we'd want to work with ourselves. What you see is what you'll pay—unless we've agreed on a custom plan.

Yes—and that's a big part of our DNA. 

We've helped founders: 

  • Facilitate compansetyp in UK, Ireland, Canada, USA, Cayman, Bahamas and Middle East. 

  • Set up share structures 

  • Raise investment 

  • Navigate exits—via acquisition, or even public listing 

  • Audit- internal and external/ statutory 

We don't just handle your books. We help guide your business journey end-to-end. 

Yes—we're trained in both Xero and QuickBooks Online. Whether you're migrating, cleaning up, or just need help interpreting reports, we'll handle it for you. 

And if you're still deciding which platform to use, we'll guide you based on what fits your business—not what's trendy. 

Start with a quick, no-pressure call. We'll ask a few questions about your size, structure, and goals, and point you to the plan that fits best—often that's not the most expensive one. 

👉 Book a Free Consultation 

We're here to help you choose wisely, not sell blindly. 

We can usually get you fully onboarded within 5–7 working days. If your situation is urgent (like upcoming filings or a funding deadline), let us know—we'll prioritise accordingly. 

Each plan includes all the essentials: annual accounts, bookkeeping, tax filings, payroll, and HMRCcompliance. From there, depending on your plan, you'llget deeper support—like quarterly reviews, tax-saving strategies, or virtual CFO insights.We've built the plans to match real business stages—nothing bloated, and nothing missing when youneed it. And if you're not sure which fits, we'll guide you without pushing a bigger plan than you need.

We'll be sorry to see you go, but we'll make the offboarding process smooth and respectful. You'll get full access to your records, and we'll work with your new accountant if needed. No friction, no complications—just a clean handover. 

We'll have that conversation early—before limits become a problem. If your transaction volume grows, your structure changes, or you add complexity (like VAT or new entities), we'll suggest a suitable upgrade and explain the cost. 

We'll never upsell for the sake of it. But we'll also never leave you under-supported. 

You're not alone—we hear this all the time. 

Late responses, vague emails, missed filings... it's frustrating. We've structured 123Financials to be the opposite of that. Growth and Scale plans will always have a dedicated contact; you'll know what's happening, when, and why. 

We're not perfect—but we're responsive, accountable, honest, transparent and clear. And that alone puts us ahead of most. 

We're here to be your accountants—not your alarm clock. 

We'll always guide you, remind you, and keep things moving—but we're not built for last-minute rescues or chasing documents for weeks. 

To get the best from us, we expect: 

🟢 Timely communication 

🟢 Sharing information when requested 

🟢 Respecting deadlines 

🟢 A two-way relationship built on mutual respect 

We do our best work when we're treated like a strategic partner with respect—not a panic button. 

If that sounds like you, we'll show up fully and deliver real value. If not, we're probably not the right fit—and that's okay too.

  • Because we've earned the trust of hundreds of clients—and they've rated us 4.8 out of 5 on Trustpilot. 

  • Because we're ICAEW-regulated and held to professional and ethical standards. 

  • And because we do the basics incredibly well—fast replies, proactive guidance, and honest advice without the jargon. If we don't know something, we say so. If we mess up (rare, but it happens), we fix it. That's how trust is built. 

You'll get a real accountants who gets to know your business and doesn't change every few months. 

They'll be reachable by email or phone. We use technology to make things smoother—but never at the expense of a human relationship. 

We do both—but we only advise at the level you need. 

Some clients want peace of mind: clean books, accurate filings, nothing overdue. Others want proactive strategy: forecasting, tax planning, financial modelling. 

We'll support you where you are—and grow with you when you're ready. No pressure. No fluff. Just practical, tailored advice when you need it. 

Accounting Partners