Employed and Self-Employed Tax Calculator
Calculate how much Income Tax and National Insurance you owe on your earnings if you're both employed and self-employed.
| Threshold income | £100,000.00 |
|---|---|
| Adjusted income | £87,430.00 |
| Pension contributions | £5,330.10 |
| Allowance | £27,432.00 |
| Amount exceeding | £67,237.90 |
NOTE: Your results will not be saved. This calculator should be used for estimations, capital gains is complicated with potential reliefs available, please get in touch if you have any queries.
Employed and Self-Employed Income Tax
TIt couldn’t be more simple. Just input your gross salary (what you’re paid before tax is deducted) and the money you make from your side hustle. Anything that you’ve spent on your business, for example buying a table to use as a stall at a market, you deduct from your overall earnings. This means you’re only taxed on your profits. These spends are known as expenses. Add any expenses to the box, “Self-employment expenses”.
Be aware that if your expenses are less than £1,000 in the tax year, we’ll automatically deduct the Trading Allowance instead in your calculations. This is an allowance that means the first £1,000 of your self-employed income is tax-free.
Understanding Side Hustle Income
Side hustle income, often derived from part-time jobs or freelance work, is subject to taxation. It's crucial to understand that even small earnings are liable to tax obligations. Here are some prevalent forms of side income:
- Property or spare room renting on platforms like Airbnb
- Online sales of commodities on platforms like Etsy, Upwork, Fiverr, eBay, or Amazon
- Freelancing in fields such as writing, graphic design, programming, or marketing
- Blogging/Vlogging with earnings through ads, sponsorships, or affiliate marketing
- Offering consultancy services, coaching, or financial consulting
- Providing tutoring or fitness training services
- Offering pet care services for pet owners
- Offering translation services in multiple languages
Taxing of Side Hustle Income
Understanding the tax brackets and rates is crucial for accurate calculations of your tax liability.
Personal Allowance
- Taxable Income: Up to £12,570
- Tax Rate: 0%
Basic Rate
- Taxable Income: £12,571 to £50,270
- Tax Rate: 20%
Higher Rate
- Taxable Income: £50,271 to £125,140
- Tax Rate: 40%
Additional Rate
- Taxable Income: Above £125,140
- Tax Rate: 45%
The UK operates on a tiered income tax system, commonly known as tax brackets. As your income increases, you move into higher tax brackets, resulting in a higher percentage of your earnings being taxed.
