Xero’s free income tax calculator
Estimate your income tax and National Insurance contributions in seconds with Xero's free UK income tax calculator. Whether you're self-employed or planning business finances, get instant clarity on what you'll owe HMRC.
- Instantly estimate your tax & NI
- Add expenses for an accurate self-employed estimate
- Know your numbers to help you meet HMRC deadlines
Tired of manual calculations?
Let Xero handle the numbers so you can focus on growing your business. Sign up for free!
Plans for growing businesses
Grow
for the first 6 months
Then £39 per month
Go beyond the basics - automate tasks and access performance dashboards.
- Send invoices and quotes
- Accept online invoice payments^
- MTD for Income Tax ready
- Reconcile transactions
- Smart document capture
- View real-time reports
- Automate bill entry and track bills
- Submit VAT returns to HMRC
- Automate subcontractor CIS calculations and reports
- Make online bill and payroll payments (domestic) for up to 5 payments
- Payroll for 1 person
- 60 day cash flow forecast
- Visualise performance with graphs
- Customise performance dashboards
- Claim expenses and mileage for 1 user
- Auto-reconcile transactions
- Company accounts and tax (optional £120 excl. Vat billed annually)
Comprehensive
for the first 6 months
Then £55 per month
Optimise profitability - tailor your insights for greater control.
- Send invoices and quotes
- Accept online invoice payments^
- MTD for Income Tax ready
- Reconcile transactions
- Smart document capture
- View real-time reports
- Automate bill entry and track bills
- Submit VAT returns to HMRC
- Automate subcontractor CIS calculations and reports
- Make online bill and payroll payments (domestic) for up to 10 payments
- Payroll for 5 people
- 90 day cash flow forecast
- Visualise performance with graphs
- Customise performance dashboards
- Claim expenses and mileage for 5 users
- Use multiple currencies
- Tailored financial health scorecards
- Make online bill payments (International) - Optional add-on
- Auto-reconcile transactions
- Company accounts and tax (optional £120 excl. Vat billed annually)
- Budget with smart suggestions
Ultimate
for the first 6 months
Then £70 per month
Future proof your scaling business - with advanced tools and analytics.
- Send invoices and quotes
- Accept online invoice payments^
- MTD for Income Tax ready
- Reconcile transactions
- Smart document capture
- View real-time reports
- Automate bill entry and track bills
- Submit VAT returns to HMRC
- Automate subcontractor CIS calculations and reports
- Make online bill and payroll payments (domestic) for up to 15 payments
- Payroll for 10 people
- 180 day cash flow forecast
- Visualise performance with graphs
- Customise performance dashboards
- Claim expenses and mileage for 10 users
- Use multiple currencies
- Tailored financial health scorecards
- Make online bill payments (International) - Optional add-on
- Track time and costs for projects for 10 users
- Analyse KPIs and ratios
- Benchmark against the industry
- Auto-reconcile transactions
- Company accounts and tax (optional £120 excl. Vat billed annually)
- Budget with smart suggestions
Need just the basics? See plans for simpler business needs. View plans
Plans for growing businesses
Grow
for the first 6 months
Then £39 per month
Go beyond the basics - automate tasks and access performance dashboards.
- Send invoices and quotes
- Accept online invoice payments^
- MTD for Income Tax ready
- Reconcile transactions
- Smart document capture
- View real-time reports
- Automate bill entry and track bills
- Submit VAT returns to HMRC
- Automate subcontractor CIS calculations and reports
- Make online bill and payroll payments (domestic) for up to 5 payments
- Payroll for 1 person
- 60 day cash flow forecast
- Visualise performance with graphs
- Customise performance dashboards
- Claim expenses and mileage for 1 user
- Auto-reconcile transactions
- Company accounts and tax (optional £120 excl. Vat billed annually)
Comprehensive
for the first 6 months
Then £55 per month
Optimise profitability - tailor your insights for greater control.
- Send invoices and quotes
- Accept online invoice payments^
- MTD for Income Tax ready
- Reconcile transactions
- Smart document capture
- View real-time reports
- Automate bill entry and track bills
- Submit VAT returns to HMRC
- Automate subcontractor CIS calculations and reports
- Make online bill and payroll payments (domestic) for up to 10 payments
- Payroll for 5 people
- 90 day cash flow forecast
- Visualise performance with graphs
- Customise performance dashboards
- Claim expenses and mileage for 5 users
- Use multiple currencies
- Tailored financial health scorecards
- Make online bill payments (International) - Optional add-on
- Auto-reconcile transactions
- Company accounts and tax (optional £120 excl. Vat billed annually)
- Budget with smart suggestions
Ultimate
for the first 6 months
Then £70 per month
Future proof your scaling business - with advanced tools and analytics.
- Send invoices and quotes
- Accept online invoice payments^
- MTD for Income Tax ready
- Reconcile transactions
- Smart document capture
- View real-time reports
- Automate bill entry and track bills
- Submit VAT returns to HMRC
- Automate subcontractor CIS calculations and reports
- Make online bill and payroll payments (domestic) for up to 15 payments
- Payroll for 10 people
- 180 day cash flow forecast
- Visualise performance with graphs
- Customise performance dashboards
- Claim expenses and mileage for 10 users
- Use multiple currencies
- Tailored financial health scorecards
- Make online bill payments (International) - Optional add-on
- Track time and costs for projects for 10 users
- Analyse KPIs and ratios
- Benchmark against the industry
- Auto-reconcile transactions
- Company accounts and tax (optional £120 excl. Vat billed annually)
- Budget with smart suggestions
Need just the basics? See plans for simpler business needs. View plans
Understanding Your Tax Calculation Results
Your results show income tax (20% on earnings £12,571-£50,270, 40% on £50,271-£125,140, and 45% above) and National Insurance. For the self-employed, mandatory Class 2 contributions have been abolished, and you now pay Class 4 NI at 6% on profits between £12,570 and £50,270.
Get more details on income taxWhat HMRC Expects on Your Self Assessment
To file your tax return correctly, HMRC requires you to provide precise details and have proof for every figure you submit.
- A full breakdown of all your income sources.
- Categorised lists of every single allowable expense.
- Supporting evidence, like receipts and invoices, for all transactions.
Master your income tax with Xero
Working out your income tax is even easier – and more accurate – with Xero accounting software. Your small business can streamline your tax process, whether you're hopping into the app to record business expenses on the move, or logging in from your browser to file your online tax returns.
- Automated calculations give you the correct figures every time
- All financial records are kept in one place to make tax season simpler
- Work with your accountant on the same numbers in real time with the cloud-based software
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Are You Ready for Making Tax Digital (MTD)?
Making Tax Digital modernises UK tax. Eligible sole traders and landlords must keep digital records and submit updates using approved software like Xero.
Get MTD-Ready with Xero
FAQs on Xero’s income tax calculator
This calculator is designed for UK small business owners, freelancers, and the self-employed. It replaces manual spreadsheets so you can confidently estimate your bill, which includes both your Income Tax and your Class 4 National Insurance.
This calculator is designed for UK small business owners, freelancers, and the self-employed. It replaces manual spreadsheets so you can confidently estimate your bill, which includes both your Income Tax and your Class 4 National Insurance.
Our calculator uses current HMRC rates for England & NI (e.g., £12,570 personal allowance; 20% basic rate to £50,270; 40% higher rate to £125,140; 45% additional rate above) for accurate estimates. Actual tax varies with additional income, reliefs, or specific circumstances.
Our calculator uses current HMRC rates for England & NI (e.g., £12,570 personal allowance; 20% basic rate to £50,270; 40% higher rate to £125,140; 45% additional rate above) for accurate estimates. Actual tax varies with additional income, reliefs, or specific circumstances.
Income tax funds general government spending while National Insurance funds specific benefits like the State Pension. For the self-employed, you now only pay Class 4 NI on profits over £12,570 (at 6%). For employees, you pay Class 1 NI (at 8%) on earnings over £242 per week.
Income tax funds general government spending while National Insurance funds specific benefits like the State Pension. For the self-employed, you now only pay Class 4 NI on profits over £12,570 (at 6%). For employees, you pay Class 1 NI (at 8%) on earnings over £242 per week.
This calculator uses UK (England and Northern Ireland) rates. Scotland has different bands with rates from 19% to 48%, while Wales currently mirrors UK rates but may diverge.
This calculator uses UK (England and Northern Ireland) rates. Scotland has different bands with rates from 19% to 48%, while Wales currently mirrors UK rates but may diverge.
Include your pension income as part of your total income at the top of the income tax estimator. You pay tax on any amounts that go above your Personal Allowance, as with the rest of your income.
See self assessment info on HMRC’s websiteInclude your pension income as part of your total income at the top of the income tax estimator. You pay tax on any amounts that go above your Personal Allowance, as with the rest of your income.
See self assessment info on HMRC’s website
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Disclaimer
Xero does not provide accounting, tax, business or legal advice. This calculator has been provided for information purposes only. You should consult your own professional advisors for advice directly relating to your business.