Use our UK Calculator for the self employed Please note that the self-employment tax calculator may not look very good on a mobile device. It is better to use a laptop/desktop or tablet to view this online tax calculator for the self-employed. Here is a free online UK self employed tax calculator. This can be used for people that are self-employed in the United Kingdom. It is a free tax calculator to work out the UK tax liability payable to HMRC based on your forecasted profits. You can determine the UK tax liability payable to HMRC by comparing your self employment income and all other types of income, such as: – Property – Employment – Bank and savings interest – Pensions Why use our free online tax calculator As a self-employed entrepreneur/business owner, you will want to know how much tax you will need to pay on your income. This allows self-employed business owners to determine how much money they need to put aside for tax, payable to HMTC on 31st January each year. It is a great tool to work out your income tax liability and Class 2 national insurance and class 4 national insurance charges. Each of these need to be reported and paid to HMRC by 31st January. Please note that the self-employment tax year runs from 6th of April to the following 5th of April. Self employed Vs Limited Company As a self-employed person in the UK, you will pay income tax and national insurance to HMRC. UK income tax ranges from 0% to 45% for self-employed persons that submit a self-assessment tax return to HMRC. – 0% – From £0 to £12,570 – 20% from £12,571 to £50,270 – 40% from £50,271 to £150,000 – 45% from £150,001 onwards In addition to the income tax charges, self-employed persons will also pay Class 2 and Class 4 national insurance that ranges from – Class 2 insurance £3.15 per week plus – Class 4 national insurance 10.25% on profits between £11,909 and £50,270 and 3.25% on profits over £50,270. If you are a high-rate taxpayer, the total tax (income tax plus national insurance) 43.25%. You can use our free online Self Employed tax calculator to determine what you need to pay to HMRC. We need to consider that the UK corporation tax is a flat 19%. This is much cheaper than the 43.25% as mentioned above. Self-employed persons that consider using a limited company. They must work out how to take money from their business while tax efficient. We have created a report detailing how shareholders and directors extract money from their limited company. There are many ways that self-employed person can incorporate their business. There are also many ways in which shareholders and directors can extract tax-free money: – Wages – Interest on director loan accounts – Dividends – Plus many more The 1st £1,000 self employment income HMRC and the UK government want to incentivise people to have a side gig. To achieve this, the government have provided a tax incentive for the self-employed. Anyone that is in self-employment earning less than £1,000 will not be subject to UK tax from HMRC. Please ensure that you benefit from all the tax allowances from HMRC the next time you submit a self-assessment tax return that involves your self-employment.
Use our UK Calculator for the self employed Please note that the self-employment tax calculator may not look very good on a mobile device. It is better to use a laptop/desktop or tablet to view this online tax calculator for the self-employed. Here is a free online UK self employed tax calculator. This can be used for people that are self-employed in the United Kingdom. It is a free tax calculator to work out the UK tax liability payable to HMRC based on your forecasted profits. You can determine the UK tax liability payable to HMRC by comparing your self employment income and all other types of income, such as: – Property – Employment – Bank and savings interest – Pensions Why use our free online tax calculator As a self-employed entrepreneur/business owner, you will want to know how much tax you will need to pay on your income. This allows self-employed business owners to determine how much money they need to put aside for tax, payable to HMTC on 31st January each year. It is a great tool to work out your income tax liability and Class 2 national insurance and class 4 national insurance charges. Each of these need to be reported and paid to HMRC by 31st January. Please note that the self-employment tax year runs from 6th of April to the following 5th of April. Self employed Vs Limited Company As a self-employed person in the UK, you will pay income tax and national insurance to HMRC. UK income tax ranges from 0% to 45% for self-employed persons that submit a self-assessment tax return to HMRC. – 0% – From £0 to £12,570 – 20% from £12,571 to £50,270 – 40% from £50,271 to £150,000 – 45% from £150,001 onwards In addition to the income tax charges, self-employed persons will also pay Class 2 and Class 4 national insurance that ranges from – Class 2 insurance £3.15 per week plus – Class 4 national insurance 10.25% on profits between £11,909 and £50,270 and 3.25% on profits over £50,270. If you are a high-rate taxpayer, the total tax (income tax plus national insurance) 43.25%. You can use our free online Self Employed tax calculator to determine what you need to pay to HMRC. We need to consider that the UK corporation tax is a flat 19%. This is much cheaper than the 43.25% as mentioned above. Self-employed persons that consider using a limited company. They must work out how to take money from their business while tax efficient. We have created a report detailing how shareholders and directors extract money from their limited company. There are many ways that self-employed person can incorporate their business. There are also many ways in which shareholders and directors can extract tax-free money: – Wages – Interest on director loan accounts – Dividends – Plus many more The 1st £1,000 self employment income HMRC and the UK government want to incentivise people to have a side gig. To achieve this, the government have provided a tax incentive for the self-employed. Anyone that is in self-employment earning less than £1,000 will not be subject to UK tax from HMRC. Please ensure that you benefit from all the tax allowances from HMRC the next time you submit a self-assessment tax return that involves your self-employment.
