Self Employment Tax Calculator
If you are self employed, use this simplified Self Employed Tax Calculator to work out your tax and National Insurance liability. The calculator uses tax information from the tax year 2015 / 2016 to show you take-home pay. More information about the calculations performed is available on the details page.
What does this mean?
The calculator needs some information from you before working out your tax and National Insurance. Firstly, enter your annual income and outgoings from self-employment. Your tax code, age, and other options might also affect your calculations.
If you are self-employed you will have to tell HMRC about your self-employment income, so that your tax, National Insurance and student loan repayments (if applicable) can be calculated. Using the details provided above, the calculator will try to work out the amount that HMRC will ask you to pay.
If your self-employment income is below the small earnings limit (£5,965 for 2015 / 16) you can apply to HMRC to defer your Class 2 National Insurance contributions - tick this option if this applies to you. You might choose to pay these contributions anyway, to make sure that you are entitled to the benefits of National Insurance, such as the State Pension. More information available from HMRC - Class 2 National Insurance exceptions.
Class 4 National Insurance Deferment - If you are both employed and self-employed, you can apply to HMRC for your Class 4 National Insurance contributions to be deferred. This is important as it can make a large difference to the amount of National Insurance you are asked to pay. If you have a certificate of deferment of Class 4 contributions, tick this box. Without this certificate, you should untick the box - this will show you how much more you may be asked to pay. You can learn about applying for Class 4 deferment on the HMRC website. If you pay more than you needed to, you can apply for a refund - see this information from HMRC about National Insurance refunds.