Income Tax Calculator


Simon Misiewicz

4th August 2020

An article relevant to 2020/21

Income Tax Calculator

You can work out your income tax liability using the free income tax calculator.

How much can I earn before I pay tax?

Per the HMRC guidance, you will see that UK citizens and UK residence (not using the remittance basis) can earn up to £12,500 tax-free from UK sourced income

How much tax do you pay in excess of your personal allowance?

Once you exceed your personal allowances you will be subject to UK tax as follows:

– 20% basic rate tax band for earnings between £12,501 and £50,000

– 40% high rate tax band for earnings between £50,001 and £150,000

– 45% additional rate tax band for earnings over £150,000

How much tax will you pay on £100,000 earnings

How much income tax will you pay as a sole trader on £100,000

Other tax-free allowances that you need to be aware of

There are other types of earnings before you start to pay tax, as follows:

– £1,000 income form property

– £1,000 tax-free income from self employment

– £2,000 tax free dividends

– £1,000 tax-free interest 

The above tax-free income streams mean you can earn up to £17,500 tax-free.

Download your buy to let tax guide here, written by our property accountants

If you want to know more then please read our “buy to let tax tips for UK landlords” article

Other earnings that may be pulled out of a limited company tax-free

There are many other opportunities that we have not considered. These opportunities only exist if you utilise a limited company as part of your trade income or property business. Some of the ways to extract tax-efficient money from a limited company may be found in our other article.

How can our property accountants help you reduce your buy to let tax?

Book a call to discuss our property accountancy services

Book a tax call with our property tax specialists using the code “Art25” to get 25% discount

Need advice?
Contact us now

Book a call to see how we can help you.

Consultation options.

We offer the two following options for initial consultations.


Discuss our monthly retained accountancy services

This is a call to discuss our monthly retained accountancy services. This is not a tax call

  • Discuss our monthly retained accountancy services

  • Talk to use about your situation

  • Tell us what tax pains you have

  • We will look into your case and identify the right service for you

Discuss our services


Pro active tax advice

(Free for clients)

Need tax advice right now? Let us identify the tax solution

  • Upload your questions in advance

  • All of our Tax Advisors collectively discuss your questions in the morning

  • One of our qualified tax advisors will provide the very best solution to you

  • We follow up with an email and a recording of the meeting

  • You and the tax advisor will clear up any remaining questions in an email exchange

Tax call from £699.95

Booking your appointment.