UK Tax Calculators


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.

Calculate now east

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.

Calculate now east

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.

Calculate now east

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.

Calculate now east

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.

Calculate now east

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.

Calculate now east

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.

Calculate now east

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

Our clients and accountants communicate via your dedicated customer portal, email, or phone. We are also available on Whatsapp.

Well, it depends upon the work involved. It is like building a home; you need an architect, builder, painter, electrician, plumber, etc. The same is with Accounts; there are bookkeeping, payroll, accounts preparation, tax issues, and specialist tax or accounting areas.

You will have a dedicated accountant responsible for the delivery of the overall project. A small team of one to three persons usually assists your dedicated accountant.

Accounting Partners