Income Tax Calculator

Jordan Macey

Income Tax Calculator Guide

Use our Income Tax Calculator to work out the PAYE and NI contributions you'll need to deduct from the salary you pay yourself.

Calculator

What is income tax?

Income tax is a tax imposed on the income or profits made by individuals in any given tax year. While this is typically deducted at source for employees, self-employed persons pay income tax differently and may be taxed a different amount.

What is the current self-employed income tax rate?

Income tax rates for the 2019/20 tax year are as follows:

  • Personal Allowance: Up to £12,500 (0%)
  • Basic rate: £12,501 to £50,000 (20%)
  • Higher rate: £50,001 to £150,000 (40%)
  • Additional rate: over £150,000 (45%)

If you need more information on Personal Allowance and income tax rates for previous tax years, check out the following guides from HMRC:

Paying income tax as a self-employed person: What you need to know

Unlike employees, self-employed individuals don't pay income tax through PAYE-they're required to file an annual Self-Assessment tax return.

Most people file their returns online these days. The deadline for doing so is 31st January, while payments for your tax bill are due on 31st January after the end of the relevant tax year. That means that your 2018/19 tax year must be paid up by 31st January 2020.

If you're newly self-employed, you'll need to register for Self-Assessment. Keep in mind to stay within the deadline, as there are penalties for registering your Self-Assessment late. We explain more about key deadlines, as well as late filing and payment penalties in our Self-Assessment guide.

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Calculator

What is income tax?

Income tax is a tax imposed on the income or profits made by individuals in any given tax year. While this is typically deducted at source for employees, self-employed persons pay income tax differently and may be taxed a different amount.

What is the current self-employed income tax rate?

Income tax rates for the 2019/20 tax year are as follows:

  • Personal Allowance: Up to £12,500 (0%)
  • Basic rate: £12,501 to £50,000 (20%)
  • Higher rate: £50,001 to £150,000 (40%)
  • Additional rate: over £150,000 (45%)

If you need more information on Personal Allowance and income tax rates for previous tax years, check out the following guides from HMRC:

Paying income tax as a self-employed person: What you need to know

Unlike employees, self-employed individuals don't pay income tax through PAYE-they're required to file an annual Self-Assessment tax return.

Most people file their returns online these days. The deadline for doing so is 31st January, while payments for your tax bill are due on 31st January after the end of the relevant tax year. That means that your 2018/19 tax year must be paid up by 31st January 2020.

If you're newly self-employed, you'll need to register for Self-Assessment. Keep in mind to stay within the deadline, as there are penalties for registering your Self-Assessment late. We explain more about key deadlines, as well as late filing and payment penalties in our Self-Assessment guide.

Resources:

-

Read More Guides below:

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
View more guides, calculators and downloads here:

Income Tax Calculator

Jordan Macey

March 19, 2022

Income Tax Calculator