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Employed and Self-Employed Income Tax Calculator

Last reviewed: December 2025

Working out your tax shouldn’t feel like guesswork. Whether you're on PAYE, self-employed or juggling both, our self-employed tax calculator shows you exactly what you’re likely to owe, and it does it fast. Pop in a few details about your income and we’ll crunch the numbers so you know where you stand and what to expect.

If you earn money from more than one source, this tool helps you calculate self-employed tax alongside PAYE to give you a clear view of your mixed income tax for the year.

Questions

Required fields are marked with an asterisk (*)

Annual salary * £

Self-employed income * £

Self-employed expenses * £

Results

Total Earnings

£0

Total Tax

£0

What you’re left with:

£0

How much tax will I pay if I’m self-employed?

HMRC taxes you on your profits if you’re self-employed, not your total earnings. Profits are what’s left after your allowable business expenses. That means the essential costs of running your business help bring down your tax bill.

Our calculator gives you an instant estimate of your self-assessment tax, including what your Income Tax and National Insurance contributions could be for the year. It’s a quick way to make sure you’re putting enough aside and staying prepared for self-assessment.

If you’ve got PAYE income as well as self-employed earnings, some of your income’s already being taxed through the Pay As You Earn (PAYE) system. No problem.

Just enter your PAYE salary into our tool along with your self-employed income and expenses. We’ll combine both to show your full PAYE and self-employed tax position.

🖩 National Insurance Calculator: Want to know how much national insurance you have to pay? We have a free calculator that can help you with that.

National Insurance Calculator

2025/2026 tax bands

Here are the latest Income Tax bands for 2025/26. These apply to self-employed income tax bands across the UK:

Personal Allowance: £12,570. You don’t pay tax on this amount.
Basic rate (20%): income between £12,571 and £50,270.
Higher rate (40%): income between £50,271 and £125,140.
Additional rate (45%): income over £125,140.

These rates apply whether you’re employed, self-employed or both. For self-employed people, remember that tax applies only to profits, and you’ll also have National Insurance to factor in.

PAYE and Self-Employed Tax Explained

Here’s how tax works when you’re employed, self-employed, or doing a bit of both

PAYE Tax

If you’re employed, your tax’s automatically taken from your salary before it reaches you. Your tax code tells your employer how much to deduct. PAYE keeps things simple, but it still relies on the right code and accurate information.

You’re responsible for making sure everything’s correct and that any extra income’s reported. If your PAYE tax calculation looks off, it could affect how much you owe on your tax on side income.

Self-Employed Tax

When you’re self-employed, you pay your tax through self-assessment. You’ll pay:

Income Tax on your profits
National Insurance Contributions (NICs), Class 2 and Class 4 NIC, depending on how much you earn

Your expenses work in your favour. You can deduct eligible costs such as tools, work travel, office supplies, phone bills and more. These reduce your taxable profit and lower your overall bill.

If your profits exceed £12,570, you’ll pay Income Tax based on the bands above. NICs apply at different thresholds. This is where combined employment and self-employment can get confusing.

Our calculator helps you see the full picture clearly, including Class 2 and Class 4 NIC so you know exactly what’s owed.

Tax when you’re both employed and self-employed

Plenty of people mix PAYE work with side jobs, CIS contracts or freelance projects. Here’s how mixed income tax works:

You get one personal allowance, shared across all your income.
PAYE taxes your employed earnings.
Anything you earn self-employed is added on top and taxed through self-assessment.
National Insurance’s treated separately. PAYE covers Class 1, while your profits determine Class 2 and Class 4 NICs.

This setup often trips people up, especially when they’re earning extra money on the side. It can lead to underpayments if HMRC hasn’t taken your tax on side income into account during the year.

Checking your numbers now’s a smart move.

Example: You earn £22,000 through PAYE and make £6,000 profit from self-employment.
Our calculator adds these together to estimate your full tax bill across both income types.

Ways to reduce your tax bill

We all want to keep more of what we earn. Here are simple, effective ways to cut your tax bill:

Check your tax code
Make sure you’re not overpaying through PAYE. Incorrect tax codes are common and often lead to refunds.
Claim your business expenses
If you’re self-employed, claim everything you’re entitled to. That includes tools, protective gear, travel to temporary worksites, home office costs, phone use and more.
Use available Allowances
The £1,000 trading allowance, also known as the trading allowance £1,000, can cover small side income. There are also tax-free allowances such as the Marriage Allowance.
Consider pension contributions
Contributions reduce your taxable income and help build your retirement pot.
Take advantage of employee schemes
If you’re on PAYE, salary sacrifice schemes like pension top-ups or cycle-to-work can reduce your taxable income.
Keep good records
Good bookkeeping helps you claim everything you’re entitled to and avoid HMRC penalties.
Think about going limited
In some cases, becoming a limited company can be more tax-efficient. Get advice before making the switch.

If you’re unsure about any of this or need help with self-assessment, RIFT’s here to make everything easy and stress-free.

Ready to start your tax refund?

Let RIFT handle it. Our experts will ensure you get every penny you're entitle to, with an average refund of £3,000 can you afford to miss out?

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Employed and Self-Employed Income Tax Calculator​