How Much Tax do you Pay When Self Employed

If you become self employed you are responsible for calculating and paying your own income tax and national insurance contributions. You should keep full records so that you can backup any payments.

You should let the Inland Revenue know as soon as possible when you become self employed, doing this should avoid you receiving a fine.

How Much

The amount of tax that you have to pay when you are self employed is the same as the amount you would pay if you had a regular job. The tax rates are as follows:

Income Tax rates and taxable bands
	2008-09	2009-10	2010-11
Starting rate for savings: 10%*	£0-£2,320	£0-£2,440	£0-£2,440
Basic rate: 20%	£0-£34,800	£0-£37,400	£0-£37,400
Higher rate: 40%	Over £34,800	Over £37,400	£37,401-£150,000
Additional rate: 50%	Not applicable	Not applicable	Over £150,000