£500 allowance, then 8.75% / 33.75% / 39.35% depending on your bracket
£
Transfer £1,260 of a spouse's unused Personal Allowance — saves £252/year
Affects families with children where adjusted net income is £60,000–£80,000
🏛️ VAT Registration Tracker
£70,000 below the £90,000 VAT registration threshold
£20,000of £90,000
£0£63k£76.5k£90k threshold
Your estimated results
Class 4 NI: 6% / 2%
Take-home pay
£15,848
£1,321/month · after all deductions
Total deductions
£1,152
Effective rate: 6.8%
Income Tax
£886
5.2% of income
Class 4 NI
£266
1.6% of income
How your income splits93.2% kept
Take-home
Income Tax
NI
Self-employment income£20,000
Less: allowable expenses−£3,000
SE taxable profit£17,000
Total income£17,000
Personal Allowance−£12,570
Income Tax£886
Class 4 NI (6%/2% on SE profit)£266
Total deductions£1,152
💡
Set aside 7% of each invoice so your SA bill never catches you off guard.
Payments on Account
Your SA bill exceeds £1,000 — HMRC will ask for two advance Payments on Account, each 50% of this year's SA bill.
First payment (31 Jan)£576
Second payment (31 Jul)£576
Total January payment£1,728
Tax bracket breakdown
Your highest tax bracketBasic rate (20%)You pay 20p tax on every £1 earned above this threshold
Personal Allowance0%
Basic rate20%
BandRateIncome in bandTax on band
Personal Allowance0%£12,570—
Basic rate← you20%£4,430£886
Total£17,000£886
🏢
Sole Trader vs Limited Company
Based on SE profit of £17,000 — simplified comparison
Sole Trader
£15,848
take-home/year
Income Tax: £886
Class 4 NI: £266
No setup cost
Limited Company
£15,049
take-home/year
Salary: £12,570
Corp Tax: £626 (19.0%)
Dividend Tax: £190
✅ Sole trader is more tax-efficient at this profit level (by £799/year)
Simplified model: salary sacrifice at £12,570, employer NI at 15% above £5,000 (April 2025 rates), no employment allowance, profit taken fully as dividends. Real savings depend on your full circumstances.
Want to reduce that tax bill legally?
An Aurestone tax review finds missed allowances and planning opportunities. Free, and takes 15 minutes.
Estimates only. Assumes standard 1257L tax code, relief-at-source pension unless salary sacrifice selected, no PAYE benefits in kind, and no maximum NI adjustment for combined Class 1/4. Student loan thresholds for 2025/26. LC comparison assumes director-only company with no Employment Allowance. Dividends calculated using UK-wide rates regardless of Scottish income bands. Always confirm your tax position with a qualified accountant.
