Know Your Tax.
Before It Knows You.

UK self-employed individuals pay Income Tax on profits above the Personal Allowance (£12,570 for 2024/25). Basic rate (20%) applies between £12,571–£50,270; higher rate (40%) from £50,271–£125,140; additional rate (45%) above £125,140. You also pay Class 4 National Insurance on profits above £12,570 at 8% (up to £50,270), then 2% above that.

UK tax residency is determined by the Statutory Residence Test (SRT). Generally, spending fewer than 16 days in the UK (or 46 days if you were not a UK resident in any of the prior 3 years) means you are non-resident. Non-residents only pay UK tax on UK-sourced income. Always consult a qualified tax adviser for your specific circumstances.

The UK VAT registration threshold for 2024/25 is £90,000 of taxable turnover in any rolling 12-month period. Once you exceed this, you must register with HMRC within 30 days. The standard VAT rate is 20%. Voluntary registration is possible below the threshold and can allow you to reclaim input VAT on business purchases.

Tax avoidance is the legal use of tax rules to reduce your liability — such as maximising pension contributions or claiming allowable business expenses. Tax evasion is the illegal concealment of income or assets to avoid paying tax owed, and carries serious civil and criminal penalties including prosecution.

US self-employed individuals pay Self-Employment (SE) Tax of 15.3% on net earnings up to $168,600 (2024), covering Social Security (12.4%) and Medicare (2.9%). An additional 0.9% Medicare surtax applies above $200,000 (single filers). Importantly, you can deduct half of SE tax from your gross income when calculating your regular income tax liability.

No. The Taxer UK calculator provides illustrative estimates for planning purposes only. Tax rules change regularly, personal allowances and reliefs vary, and individual circumstances differ. Always verify figures with HMRC directly or engage a qualified accountant before submitting any tax return.