Self employed tax calculator

Our calculator tool is intended to give you a rough guide as to how much tax and national insurance you will pay for the selected tax year. Here’s how we work it out, using an example:

• You input your net pay for the year: £30,000
• The standard tax-free Personal Allowance (for 2023/2024) is £12,570. That means you won’t pay any tax on these earnings. 
• The remaining £17,500 will be subject to the basic rate of tax at 20%.
  • £12,570 – £50,270 = 20% (basic rate)
  • £50,270 – £125,140 = 40% (higher rate)
  • £125,140+ = 45% (additional rate)
• That means you’ll pay approximately £3,486.00 in Income Tax on your £17,430 of taxable earnings.
• You’ll also have to pay National Insurance as your earnings are above the Class 2 (£6,725) and Class 4 (£12,570) threshold. 
  • Class 2 = flat rate of £3.45 per week
  • Class 4 = 9% on profits between £12,570-£50,270 and 2% thereafter.
• That means you’ll pay £179.00 in Class 2 National Insurance and £1,567.00 in Class 4 National Insurance.
• Deducting these amounts, your total take-home pay will be £24,767.

There are other elements which will come into play such as student loans and allowable expenses, but this should give you an idea as to your tax liability. Having these figures in mind will enable you to plan both your business and personal finances.