UK Employed and Self-Employed Tax Calculator

Your combined tax and National Insurance

Income Tax is worked out once on your combined salary and self-employed profit together. Employee Class 1 National Insurance applies to your salary; Class 4 National Insurance applies to your self-employed profit.

• Income Tax
• Employee Class 1 NI
• Combined income after tax/NI

Impact of your self-employed profit

This section shows what your self-employed profit specifically adds to your tax and National Insurance, over and above what you would owe from your salary alone. It does not include your employee Class 1 National Insurance, which depends only on your salary and does not change when your self-employed profit changes.

PAYE and Self Assessment

Tax and National Insurance on your employment salary are normally collected through PAYE during the year. Your self-employed profit is reported and reconciled through Self Assessment. The combined total above is an estimate of your full annual liability; the additional tax and NI figure is an estimate of the extra amount attributable to your self-employed profit, not necessarily the exact cash amount HMRC will ask you to pay through Self Assessment. Your actual balance can depend on how much tax was already deducted through PAYE, your tax code, prior liabilities, payments on account, and other income or adjustments this calculator does not account for.

One Personal Allowance for your combined income

You only have one Personal Allowance and one set of Income Tax bands, applied to your combined salary and self-employed profit together. If your salary alone already uses up your Personal Allowance, your self-employed profit is taxed from the first pound. If your combined income is high enough, your self-employed profit can also reduce your Personal Allowance through the taper that applies above £100,000, which is already reflected in the additional tax figure above.

Class 1 and Class 4 National Insurance

Class 1 National Insurance is deducted from your salary through PAYE. Class 4 National Insurance is charged on your self-employed profit above the Lower Profits Limit (£12,570.00), through Self Assessment. These are calculated independently in this estimate.

Class 2 National Insurance

Since 6 April 2024, Class 2 National Insurance is not a mandatory payment for most self-employed people. If your self-employed profit is at or above the Small Profits Threshold (£7,105.00), you are treated as having paid Class 2, protecting your State Pension and other contributory benefits, with nothing to pay. This calculator never deducts Class 2 as a cost. For this calculation, your profit is at or above the Small Profits Threshold.

Taxable profit versus turnover

This calculator asks for your self-employed profit after allowable business expenses or the trading allowance, not your turnover. If you need help working out your profit from your turnover and expenses, use the Self-Employed Tax Calculator, which covers this in detail.

Payments on Account

Payments on Account are advance payments towards your following year's Self Assessment bill, not extra tax on top of what you owe. They generally apply if your Self Assessment bill is over £1,000 and less than 80% of your tax was already collected at source, for example through PAYE. This calculator does not calculate Payments on Account; see GOV.UK guidance for details.

Scotland

Scotland uses its own Income Tax bands, which apply to your combined salary and self-employed profit together. National Insurance, both Class 1 and Class 4, is the same across the UK and does not vary by region.

Student Loan repayments

If you have a Student Loan, repayments can be affected by your combined employment and self-employment income, with any employer deductions credited against the total worked out through Self Assessment. This calculator does not include Student Loan repayments. The Student Loan Repayment Calculator estimates repayments based on a single earnings figure; it does not calculate the combined PAYE-plus-Self-Assessment reconciliation for someone with both employment and self-employment income.