Employed and Self-Employed Tax Calculator

Navigating your tax responsibilities can be tricky, whether you’re employed, self-employed, or both. That’s why we’ve created this easy-to-use calculator. Simply enter a few details about your income, and we’ll show you how much tax you need to pay. Whether you're receiving a salary through PAYE (Pay As You Earn) or working for yourself, we’ve got you covered. Our calculator helps you understand your tax situation so you can make informed decisions and stay on top of your tax payments.

Questions

Required fields are marked with an asterisk (*)

Annual salary * £

Self-employed income * £

Self-employed expenses * £

Results

Total Earnings

£0

Total Tax

£0

What you’re left with:

£0

2024/2025 Tax Bands

For the 2024/2025 tax year, the income tax bands for both employed and self-employed individuals are as follows:

Personal Allowance: £12,570 – You won’t pay tax on this amount.
Basic Rate: 20% on income between £12,571 and £50,270.
Higher Rate: 40% on income between £50,271 and £125,140.
Additional Rate: 45% on income over £125,141.

These are the standard rates for the UK, and they apply whether you're employed, self-employed, or a combination of both. For self-employed individuals, there are also National Insurance contributions to consider.

PAYE and Self-Employed Tax Explained

PAYE Tax

If you’re employed, your tax is automatically deducted from your salary through PAYE (Pay As You Earn). Your employer handles all of this, so you don't need to worry about submitting payments directly to HMRC. However, you’re still responsible for ensuring that your tax code is correct and that any other income or deductions are properly reported.

Self-Employed Tax

When you’re self-employed, things work a bit differently. You’re responsible for calculating and paying your own tax. This means filing a Self Assessment tax return with HMRC every year. As a self-employed person, you’ll pay both Income Tax and National Insurance Contributions (NICs) on your profits. You’ll also have the opportunity to deduct eligible business expenses, which can lower your taxable income.
If your profits exceed £12,570, you will be subject to the income tax bands mentioned earlier. Additionally, Class 2 and Class 4 National Insurance contributions apply, which vary depending on your profits.

Ways to reduce your tax bill

We all want to keep more of what we earn. Here are a few ways to help reduce your tax bill, whether you're employed or self-employed:

Check Your Tax Code
If you're employed, a wrong tax code can mean you're overpaying. Double-check your tax code to ensure you're paying the correct amount.
Claim Business Expenses (for the Self-Employed)
As a self-employed individual, you can deduct allowable expenses such as office supplies, business-related travel, and even part of your home expenses if you work from home. This reduces your taxable profit and can significantly lower your tax bill.
Take Advantage of Tax-Free Allowances
Everyone gets a personal allowance of £12,570, but there are also other tax-free allowances like the Marriage Allowance, that could lower your bill further.
Salary Sacrifice Schemes
If you’re employed, some employers offer salary sacrifice schemes, such as pension contributions or childcare vouchers, which can reduce your taxable income.
Make Contributions to a Pension
Contributions to a pension are deducted before tax is calculated, meaning you could reduce the amount of tax you pay. It’s a win for your retirement savings and your tax bill.
Consider Incorporating Your Business
If you’re self-employed, incorporating your business into a limited company might help you save on tax, as company tax rates can be more beneficial than personal tax rates.

If you’re ever unsure about your tax situation or need help with your Self-Assessment, RIFT is here for you. We can help you through the process and ensure you're only paying what you owe.

We're here to helpTax Calculators

Tax doesn’t have to be stressful. Whether it comes to National Insurance contributions or dealing with Capital Gains Tax our tax calculators are here to help and they're free to use.

And when it comes to filing your Self Assessment tax return, we’ve got you covered. Our expert team is here to help you with everything from calculating your tax to filing your returns on time. Plus, if you’re eligible for any tax refunds, we’ll help you claim them too.

Get in touch with RIFT today, and let us handle the numbers for you so you can focus on what really matters.

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Employed and Self-Employed Tax Calculator​