Use this simple calculator to quickly calculate the tax, and other deductions, that are taken from income from self employment.
This calculator gets you a full breakdown of the deductions on your profits with minimum inputs required. You just input your turnover and associated costs, select the period for those figures and add any options required. We provide options for contributions to a private pension and an option for student loan repayments. That's it!
The full profit summary provided will also show you the yearly change on the amount taken from your gross profits.
Self employment profits are subject to the same income taxes as those taken from employed people. The key difference is in two areas, National Insurance Contributions and the ability to deduct expenses and costs before calculating any deductions.
Self employed people pay a lower rate of NIC (National Insurance) contributions called Class 4 national insurance. They also pay a weekly fixed rate Class 2 NIC.
Class 2 NICs can be avoided if self employment profits are below the exemptions limit.
If you are self employed chances are that you possibly have multiple sources of income. If this accurately describes your circumstances we recommend using our calculator that provides a multiple income tax estimate - it has options for dividends, savings, property and much more to give you an overall picture of how much you retain from your income!