We sort your Self Assessment for you. £119, all in.
Fast, effortless and 100% online.
The self-employed taxes are the same as the ones regular employees have to pay: income tax and National Insurance contributions.
You’re just paying them differently: instead of the employer doing it for you, you have to calculate them, file a Self Assessment tax return, and pay the taxes yourself.
Is the same as for regular employees: £12,500 in the 2020/21 tax year.
If you have two jobs and one is self-employed, make sure that your Personal Allowance is applied to the one where you make the most money.
Just look at your tax code:
Unlike for employees, when you’re self-employed you pay income tax on your profits only, not your total income.
To calculate your profits deduct your claimable expenses from your self-employed income.
Then simply multiply by the tax rate:
Income | Tax rate |
---|---|
between £0 and £12,500 | 0% |
between £12,501 and £50,000 | 20% |
between £50,001 to £150,000 | 40% |
above £150,001 | 45% |
Here is a self-employed tax calculator if you want to know how much you have to pay.
As a self-employed, you need to pay:
Check out our article about the NIC that sole traders have to pay.
Or see our Guides, Calculators or Taxopedia
Fast, effortless and done for you online – the way tax returns should be done. Free to sign up.