Tax isn't Taxing
How much tax you’ll pay as a self-employed person will depend on how much money you’ve made and the ‘allowable expenses’ you’ve incurred in the course of your business. Certain business-related expenses can be subtracted from your income when you’re calculating your taxable profit.
The tax-free personal allowance and the tax bands are the same for self-employed and employed people, so for 2019-20 you can make up to £12,500 before you need to pay tax (£11,850 for 2018-19). You’ll then pay the basic rate of income tax (20%) on income up to £50,000 (£46,350 for 2018-19). The higher rate of 40% applies to income over £50,000, and on income over £150,000 you pay the additional rate of 45%.
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