Free UK Tax Calculator 2024/25 | Self-Employed & PAYE Employees | Verify Your Tax | LOYALS London
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๐Ÿ‘ฅ 500+ Clients
๐Ÿ’ฐ Tax Returns from ยฃ50/month
๐Ÿงฎ FREE TAX CALCULATOR 2024/25

UK Tax Calculator | Self-Employed & Employees

Calculate your Income Tax, NICs, and Student Loans instantly โ€” OR verify if your employer deducted the correct tax from your payslip. Free tool from ICAEW chartered accountants serving 500+ London businesses. Professional Self Assessment from ยฃ300 one-off or ยฃ50/month ongoing support.

โš ๏ธ Important: This calculator provides estimates based on 2024/25 HMRC rates. Actual tax may vary. Claiming expenses incorrectly (over-claiming or wrong proportions) can trigger HMRC penalties from ยฃ300 to ยฃ10,000+. Our ICAEW accountants ensure you claim the maximum allowable amount while staying compliant โ€” clients average ยฃ3,200 in legitimate tax savings annually.

๐Ÿ“Š Enter Your Details

โš ๏ธ Not all expenses are 100% claimable. Many require proportion calculations. Over-claiming = HMRC penalties.
Optional: If you also have PAYE income

๐Ÿ’ก Not Sure What You Can Claim?

Most people either miss deductions OR over-claim and face penalties. Our accountants find the perfect balance โ€” maximum legitimate savings, zero HMRC risk.

๐Ÿ“ž Free Tax Review Call

๐Ÿ’ท Your Tax Calculation

Net Profit: ยฃ0.00
Income Tax: ยฃ0.00
Class 1 NICs (Employment): ยฃ0.00
Class 2 NICs (Self-Employment): ยฃ0.00
Class 4 NICs (Self-Employment): ยฃ0.00
Student Loan Repayment: ยฃ0.00
Total Tax & Deductions: ยฃ0.00
Your Take-Home Pay: ยฃ0.00

๐ŸŽฏ Want to Optimize Your Tax Return?

Our ICAEW accountants specialize in self-employment tax optimization. We ensure you claim every allowable expense while staying compliant โ€” no penalties, maximum savings.

๐Ÿ“… Book Free Consultation

๐Ÿ’ฐ Professional Tax Return Services

Choose the service that matches your needs โ€” from one-off tax returns to year-round support with Payment on Account management

โœ… Suitable for: Self-Employed

One-Off Tax Return

ยฃ300
one-time fee
  • SA100 preparation & submission
  • Full tax optimization review
  • Expense deduction maximization
  • HMRC deadline compliance
  • Professional representation
  • NICs calculations (Class 2 & 4)
Get Started
โญ MOST POPULAR
โœ… Suitable for: Self-Employed

Year-Round Support

ยฃ50
per month
  • Everything in One-Off PLUS:
  • Unlimited HMRC correspondence handling
  • Automatic deadline reminders (all future years)
  • Pension planning & optimization advice
  • Income protection strategy guidance
  • Payment on Account management & reductions
  • Real-time tax assessment throughout the year
  • Proactive tax-saving opportunities
  • Direct accountant access via phone/email
Start Saving
โœ… Suitable for: Employees (PAYE)

Employee Tax Review

ยฃ300
one-time fee
  • Complete PAYE tax review
  • P60/Payslip error identification
  • HMRC communication & resolution
  • Tax code correction requests
  • Refund claims for overpaid tax
  • Student loan deduction verification
  • Employment benefits assessment
  • Future tax position optimization
Review My Tax

Not sure which option is right for you? Book a free 15-minute consultation and we'll assess your situation.

๐Ÿ“ž Free Consultation Call

๐Ÿ’ณ Understanding Payment on Account

Payment on Account is HMRC's way of collecting tax in advance for the following year โ€” but many self-employed people overpay unnecessarily

๐Ÿ“‹

What Is Payment on Account?

If you owe ยฃ1,000+ in tax (beyond PAYE deductions), HMRC requires you to pay two advance payments toward next year's tax bill. Each payment is 50% of your previous year's tax liability. Due dates: 31 January (first payment + current year balance) and 31 July (second payment).

โš ๏ธ

The Overpayment Problem

Payment on Account is based on last year's earnings โ€” but what if your income drops this year? You'll be paying too much in advance. Many self-employed people overpay thousands in advance tax when their actual liability is much lower. This ties up cash flow unnecessarily until HMRC refunds the difference (which can take months).

โœ…

How LOYALS Monthly Clients Save

Our ยฃ50/month service includes Payment on Account management. We monitor your income in real-time throughout the year. If your earnings are lower than last year, we submit reduction claims to HMRC immediately โ€” lowering your advance payments to match your actual expected liability. This prevents overpayment and protects your cash flow.

๐Ÿ’ก

Real Example: How Payment on Account Reduction Works

Scenario: Last year you earned ยฃ50,000 profit and owed ยฃ10,000 in tax. HMRC automatically sets your Payment on Account at ยฃ10,000 (two payments of ยฃ5,000 each). But this year, your income dropped to ยฃ30,000 due to fewer contracts.

Without reduction: You'd still pay ยฃ10,000 in advance (ยฃ5K in Jan, ยฃ5K in Jul), then wait months for HMRC to refund ~ยฃ4,000 when you file next year's return.

With LOYALS: We assess your real-time income in Q4 (November/December) and immediately submit a reduction claim. Your January payment drops to ยฃ3,000 instead of ยฃ5,000, and July payment is also ยฃ3,000. You save ยฃ4,000 in cash flow โ€” money that stays in your business account instead of being tied up with HMRC.

The result: Better cash flow, no overpayment stress, and accurate tax payments that match your actual earnings.

๐Ÿš€ Need to Register for Self-Employment?

Starting your self-employment journey? We handle your HMRC registration for ยฃ200 (one-off fee). The process is simple:

  • โœ“ Quick phone consultation to gather essential details
  • โœ“ Easy online form sent via secure link
  • โœ“ Fully registered within 14 working days
  • โœ“ Compliance guaranteed from day one

When to register: Within 3 months of earning ยฃ1,000+ from self-employment, or by 5 October following the tax year you became self-employed. Missing this deadline = automatic ยฃ100 penalty.

Register Me for ยฃ200

๐Ÿ“… Key Tax Deadlines 2024/25

Never miss a deadline โ€” LOYALS clients get automatic reminders for all key dates

5
OCT 2025

Registration Deadline

If you became self-employed in 2024/25, you must register for Self Assessment by this date. Late registration = ยฃ100 penalty.

31
OCT 2025

Paper Return Deadline

Deadline for paper Self Assessment returns (if filing by post). Online filers have until 31 January.

31
JAN 2026

Online Return & First Payment on Account

Critical: Online Self Assessment submission AND full payment of any tax owed PLUS first Payment on Account (50% of next year's estimated tax). Late filing = ยฃ100+ penalties. Late payment = interest + penalties.

31
JUL 2026

Second Payment on Account

Second advance payment toward next year's bill (another 50% of estimated tax). Missed payment = interest charges. LOYALS monthly clients: We can reduce this if your income has dropped.

โš ๏ธ Critical: Claiming Expenses Incorrectly = HMRC Penalties

It's not just about missing expenses โ€” claiming too much or calculating proportions wrong triggers HMRC penalties. Hover or tap each card to learn more.

๐Ÿ’ฐ

ยฃ300 Penalty

Careless errors

Careless Errors

  • Claiming 100% vehicle costs when only 60% is business use
  • Full broadband bill without business proportion
  • Automatic ยฃ300 fine
๐Ÿ“Š

30-70% Extra Tax

Deliberate errors

Deliberate But Not Concealed

  • Knowingly over-claiming expenses
  • 30-70% of underpaid tax as penalty
  • Plus interest charges
๐Ÿšจ

100% + Prosecution

Deliberate concealment

Deliberate Concealment

  • Hiding income or inflating expenses
  • 100% of tax underpaid
  • Criminal prosecution possible
โŒ

Common Mistakes

What triggers penalties

Typical Errors

  • Personal meals claimed as business
  • Clothing/gym memberships
  • Wrong home office percentage
  • No mileage log for vehicle
๐Ÿ”

Proportion Rules

What must be calculated

Requires Proportions

  • Vehicle costs (business %)
  • Phone bills (business %)
  • Broadband (business %)
  • Home office space & time
โœ…

LOYALS Protection

How we keep you safe

Zero Penalty Risk

  • Exact proportion calculations
  • Compliant record-keeping
  • Maximum legitimate deductions
  • Average ยฃ3,200 savings

Common Allowable Expenses for Self-Employed

Hover or tap each card to see what's included. Remember: Not all amounts are 100% claimable โ€” many require proportion calculations.

๐Ÿข

Office Costs

Running your workspace

Includes:

  • Rent (business portion)
  • Business rates
  • Utilities (proportion)
  • Property insurance
  • Office cleaning
๐Ÿš—

Travel Costs

Business journey expenses

Includes:

  • Vehicle fuel (business %)
  • Vehicle insurance (business %)
  • Repairs & servicing
  • Public transport
  • Parking & tolls
๐Ÿ’ผ

Professional Fees

Expert services

Includes:

  • Accountancy fees
  • Legal fees
  • Professional subscriptions
  • Industry memberships
  • Trade body fees
๐Ÿ’ป

Equipment & Tools

Business assets

Includes:

  • Computers & laptops
  • Office furniture
  • Software subscriptions
  • Machinery & tools
  • Equipment repairs
๐Ÿ“ฑ

Phone & Internet

Communication costs

Includes:

  • Mobile phone (business %)
  • Broadband (business %)
  • Landline rental
  • Business calls
  • Web hosting
๐Ÿ“ข

Marketing & Advertising

Promoting your business

Includes:

  • Website costs
  • Online advertising
  • Print materials
  • Business cards
  • Social media ads
๐Ÿ‘ฅ

Staff Costs

Employee expenses

Includes:

  • Salaries & wages
  • Employer NICs
  • Pension contributions
  • Staff training
  • Employee benefits
๐Ÿฆ

Financial Costs

Banking & loans

Includes:

  • Bank charges
  • Business loan interest
  • Credit card fees (business)
  • Hire purchase interest
  • Leasing costs
๐Ÿ›ก๏ธ

Insurance

Business protection

Includes:

  • Professional indemnity
  • Public liability
  • Employer's liability
  • Business contents
  • Income protection

โš ๏ธ Key Rule: "Wholly and Exclusively" for Business

Expenses must be used wholly and exclusively for business purposes. Mixed-use items (vehicle, phone, home office) require accurate proportion calculations. Get this wrong = HMRC penalties. Get professional help to maximize legitimate deductions safely.

Free Expense Optimization Review

Understanding UK Tax 2024/25

๐Ÿ“‹

Income Tax Bands

Personal Allowance: ยฃ12,570 (tax-free)
Basic Rate (20%): ยฃ12,571 - ยฃ50,270
Higher Rate (40%): ยฃ50,271 - ยฃ125,140
Additional Rate (45%): Over ยฃ125,140

๐Ÿ’ณ

National Insurance 2024/25

Class 1 (Employees): 12% (ยฃ12,570-ยฃ50,270), 2% above
Class 2 (Self-Employed): ยฃ3.45/week if profit over ยฃ6,725
Class 4 (Self-Employed): 9% (ยฃ12,570-ยฃ50,270), 2% above

๐ŸŽ“

Student Loan Repayments

Plan 1: 9% over ยฃ24,990
Plan 2: 9% over ยฃ27,295
Plan 4: 9% over ยฃ31,395
Calculated on total income (employed + self-employed)

๐Ÿ“ Records You Must Keep (and For How Long)

HMRC requires you to keep specific records for at least 5 years after the 31 January submission deadline. Hover or tap to learn what you need.

๐Ÿ’ท

Income Records

All business earnings

Keep These:

  • All invoices you issued
  • Bank statements
  • Cash books/ledgers
  • Till rolls
  • Payment receipts
๐Ÿงพ

Expense Receipts

Proof of business costs

Keep These:

  • All supplier invoices
  • Receipts for expenses
  • Petty cash records
  • Credit card statements
  • Mileage logs
๐Ÿ‘ฅ

Employee Records

Payroll documentation

Keep These:

  • Pay slips
  • P11D forms
  • P60 forms
  • PAYE records
  • Pension contributions
๐Ÿ“Š

VAT Records

If VAT registered

Keep These:

  • VAT invoices issued
  • VAT invoices received
  • VAT account details
  • VAT return copies
  • Credit/debit notes
๐Ÿ“ฆ

Asset Records

Equipment & property

Keep These:

  • Purchase invoices
  • Disposal records
  • Capital allowances
  • Depreciation schedules
  • Lease agreements
โš ๏ธ

If You Don't Keep Records

HMRC penalties

Consequences:

  • Up to ยฃ3,000 penalty
  • Expenses disallowed
  • HMRC estimated assessment
  • Additional tax charges
โœ…

LOYALS Solution: Automated Record-Keeping

We set up cloud accounting systems that automatically store and categorize all records. Everything digital, secure, and HMRC-ready. Zero record-keeping stress, full compliance guaranteed.

Get Automated Record-Keeping

Frequently Asked Questions About UK Tax

Can I use this calculator to verify my P60 or payslip is correct? +
Absolutely! This calculator works for both self-employed AND employees. Simply enter your gross employment income to verify if your employer deducted the correct Income Tax and National Insurance. If the calculator shows significantly different figures than your P60 or payslip, you may have been overtaxed or undertaxed. Common scenarios: emergency tax code, incorrect student loan deductions, or employer errors. If you discover a discrepancy, LOYALS can review your payslip free of charge and help you claim any refund owed.
What is Payment on Account and how much will I need to pay? +
Payment on Account is advance tax paid toward next year's bill. If you owe ยฃ1,000+ in tax (beyond PAYE deductions), HMRC requires two advance payments: 50% by 31 January (alongside your current year's balance), another 50% by 31 July. These payments are based on your previous year's tax bill. Example: If you owed ยฃ8,000 last year, you'll pay ยฃ4,000 on 31 Jan and ยฃ4,000 on 31 Jul toward next year. The problem? If your income drops this year, you'll overpay. LOYALS monthly clients (ยฃ50/month) receive real-time assessment and we submit reduction claims to HMRC, preventing overpayment and protecting cash flow.
How much does a Self Assessment tax return cost in London? +
LOYALS offers two options for Self Assessment: One-Off Service (ยฃ300): Includes SA100 preparation, submission, full tax optimization review, and professional representation with HMRC. Perfect if you just need the annual return filed correctly. Monthly Support (ยฃ50/month): Includes everything in the one-off service PLUS year-round unlimited HMRC correspondence handling, automatic deadline reminders for all future years, pension planning advice, income protection strategy guidance, and Payment on Account management with reduction claims when needed. Most clients choose the monthly option because it provides continuous support and typically saves ยฃ2,500-ยฃ5,000 annually through proactive tax planning.
When is the Self Assessment deadline for 2024/25? +
For the 2024/25 tax year (6 April 2024 - 5 April 2025), key deadlines are: 5 October 2025 - Register for Self Assessment if newly self-employed (late = ยฃ100 penalty). 31 January 2026 - Online return deadline AND payment deadline for any tax owed PLUS first Payment on Account. Miss this and you face: automatic ยฃ100 penalty immediately, ยฃ10/day penalty after 3 months (up to ยฃ900), 5% surcharge on unpaid tax after 30 days, further penalties and interest continuing. 31 July 2026 - Second Payment on Account due. LOYALS clients have achieved zero late filings and zero HMRC penalties. We handle everything automatically with built-in buffer time.
What expenses can I claim as self-employed in the UK? +
You can claim expenses that are "wholly and exclusively" for business purposes. Common allowable expenses include: office costs (rent, rates, utilities - business proportion only), travel costs (fuel, insurance, repairs - business mileage only), professional fees (accountancy, legal, subscriptions), equipment & tools (computers, furniture, software), phone & internet (business usage proportion), marketing & advertising, staff costs (salaries, NICs, pensions), financial costs (bank charges, loan interest), and insurance (professional indemnity, public liability). CRITICAL: Most expenses require proportion calculations. Claiming 100% of your broadband when only 40% is business use = HMRC penalty. Vehicle expenses must be supported by mileage logs. Home office claims must match actual business-use space and time. Our accountants calculate exact proportions to maximize legitimate deductions while preventing penalties.
How do I register for self-employment with HMRC? +
You must register for Self Assessment within 3 months of earning ยฃ1,000+ from self-employment, or by 5 October following the tax year you started. The process involves creating a Government Gateway account, completing a Self Assessment registration (SA1 form online), and receiving your Unique Taxpayer Reference (UTR) within 10 working days. Missing the deadline triggers automatic ยฃ100 penalty. LOYALS handles the entire registration for ยฃ200: we gather your details via phone consultation, submit everything to HMRC on your behalf, and ensure you're fully compliant from day one. You'll receive your UTR and be set up for your first tax return, with guidance on what records to keep and how to track expenses properly.
Do I pay tax if I earn under the Personal Allowance of ยฃ12,570? +
If your total income (self-employed + employed combined) is under ยฃ12,570, you typically won't pay Income Tax. However: You may still owe National Insurance โ€” Class 2 NICs (ยฃ3.45/week = ยฃ179.40/year) if self-employment profit exceeds ยฃ6,725. Class 4 NICs don't apply until profit exceeds ยฃ12,570. You must still file a Self Assessment return if: your self-employment income exceeds ยฃ1,000 (even if profit after expenses is below ยฃ12,570), you're registered as self-employed with HMRC, or you receive a notice to file from HMRC. Filing ensures you build National Insurance credits toward state pension. Many low-earning self-employed people face penalties for not filing even when they owe no tax. Stay compliant from day one.
Can I reduce my Payment on Account if my income drops? +
Yes! This is one of the most overlooked tax-saving opportunities. If your current year's income is lower than last year, you can submit a Payment on Account reduction claim to HMRC. This prevents overpayment and protects cash flow. The challenge is timing and accuracy โ€” submit too late and you've already overpaid; claim too much reduction and you'll owe interest on underpayment. LOYALS monthly clients (ยฃ50/month) receive automatic Payment on Account management: we monitor your income throughout the year, identify when reductions are justified, and submit claims to HMRC immediately. Example: If last year you owed ยฃ10,000 tax (requiring ยฃ10,000 in advance payments for next year), but this year your income drops 40%, we'll reduce your advance payments to ยฃ6,000 โ€” saving you ยฃ4,000 in cash flow that would otherwise be tied up with HMRC until your next return.
What's the difference between Class 2 and Class 4 National Insurance? +
Class 2 NICs: Flat-rate weekly contribution of ยฃ3.45/week (ยฃ179.40 annually for 2024/25) paid if your self-employment profit exceeds ยฃ6,725. This is small but critically important โ€” it ensures you build state pension entitlement. Without paying Class 2, you won't qualify for full state pension. Class 4 NICs: Profit-based contribution calculated as 9% on profits between ยฃ12,570-ยฃ50,270, and 2% on profits above ยฃ50,270. Example: On ยฃ40,000 profit you'd pay approximately ยฃ2,467 in Class 4 NICs. Class 4 does NOT count toward state pension or other benefits โ€” it's purely a tax. Both are collected via Self Assessment and paid by 31 January. Common mistake: People miscalculate these or forget Class 2, resulting in underpayment penalties and lost pension years.
How accurate is this self-employment tax calculator? +
This calculator uses official 2024/25 HMRC tax rates and thresholds for maximum accuracy. It provides accurate estimates for Income Tax, National Insurance (Classes 1, 2, and 4), and Student Loan repayments based on the information you enter. However, it's an estimate only. Your actual tax bill may differ based on: pension contributions (reduce taxable income), Gift Aid donations (extend basic rate band), marriage allowance transfer, capital allowances on equipment, other income sources (property, dividends, savings interest), and your specific circumstances. The calculator assumes standard Personal Allowance (ยฃ12,570) unless you select a different tax code. For official calculations, strategic tax planning, and minimizing your tax bill legally, consult an ICAEW chartered accountant. LOYALS clients average ยฃ3,200 in legitimate tax savings annually through professional optimization.

Stop Overpaying Tax. Stop Risking Penalties.

Join 500+ London freelancers, sole traders, and employees who trust LOYALS to optimize their tax position. Our ICAEW chartered accountants ensure you claim maximum allowable deductions while staying 100% compliant โ€” zero penalty risk, average ยฃ3,200 in savings annually.

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