Self-Employed

Tax Calculator

Online Self-Employed Tax & Ni Calculator to work out how much tax your will pay on your earnings.

Payment on Account Calculator

What, why, when, how

Calculations =

1. base figure for calculations (use previous net profit or add your own.

2. Answer = next Jan 2023 = 1/2 tax bill & 1/2 last’s years plus balancing payment!

Next July = 1/2 last years.

 

Too complicated.  If this is your first tax payment, then just this year’s x 2 = 1.5 in Jan & .5 in July with an explanation. Otherwise, re-calculate using your previous on account payment?

Notes

The first time you pay your tax bill in January, please budget for 1.5 times the amount due to payments on account

Payments on account include Class 4 National Insurance Contributions where applicable, but not student loan repayments or capital gains tax.

You won’t need to make a payment on account to HMRC if:

  • your tax bill for the previous year was less than £1,000 after PAYE
  • 80 per cent or more of your tax was deducted at source through PAYE

Example

ExampleYour bill for the 2020 to 2021 tax year is £3,000. You made 2 payments on account last year of £900 each (£1,800 in total).

The total tax to pay by midnight on 31 January 2022 is £2,700. This includes:

  • your ‘balancing payment’ of £1,200 for the 2020 to 2021 tax year (£3,000 minus £1,800)
  • the first payment on account of £1,500 (half your 2020 to 2021 tax bill) towards your 2021 to 2022 tax bill

You then make a second payment on account of £1,500 on 31 July 2022.

If your tax bill for the 2021 to 2022 tax year is more than £3,000 (the total of your 2 payments on account), you’ll need to make a ‘balancing payment’ by 31 January 2023.

Payments on account do not include anything you owe for capital gains or student loans (if you’re self-employed) – you’ll pay those in your ‘balancing payment’.

This online calculator is for guidance only.

Please follow the advice of the Tax Office and your Accountant.

 

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