Frequently Asked Questions

IR35 is the UK's set of off-payroll working rules. They decide whether a contractor working through an intermediary (usually a Ltd company) should be taxed as a deemed employee. "Inside IR35" means PAYE applies; "outside" means you can use the Ltd company's tax efficiency.

HMRC requires self-employed people to pay tax in advance for the next tax year — two equal payments due 31 January and 31 July, each based on half your prior year's bill. They count toward the next return, but you need the cash ready.

Sole trader is simpler — one tax return, no company filings. Ltd is more tax-efficient above ~£40-50k profit thanks to the salary/dividend split, but adds bookkeeping, Companies House filing, and corporation tax. The break-even varies year to year as rates change.

The first £500 (the dividend allowance) is tax-free for 2024-25 and 2025-26. Above that: 8.75% basic rate, 33.75% higher rate, 39.35% additional rate. Dividends sit on top of your other income in the bands.

For 2025-26, almost always £12,570 — the personal allowance. It's fully corporation-tax-deductible, attracts no income tax or employee NI, and only triggers a small employer NI bill above the £5,000 secondary threshold. The remainder flows out as dividends.

Marginal rate is the tax on your next £1 of profit — including National Insurance. For a sole trader at £40k, the next £1 of profit is taxed at 20% income tax + 6% Class 4 NI = 26% combined. For Ltd directors paying via dividends, marginal rate is corporation tax + dividend tax stacked.

Yes — just copy the URL. All your inputs are encoded in the query string, so the page reproduces exactly the same result for whoever opens the link. Nothing personal is included; just the numbers you typed.

Yes — when you edit rates under Custom tax year, they're saved in your browser's localStorage. They persist across visits on the same browser. Reset to defaults with the button at the bottom of the panel.

Scotland has six bands for 2025-26 (Starter 19%, Basic 20%, Intermediate 21%, Higher 42%, Advanced 45%, Top 48%) instead of England's three. Toggle Scotland on any calculator to use them. NI and Corporation Tax are UK-wide.

HICBC introduces an extra step that depends on whether you or your partner claims Child Benefit. We didn't want to ask for that on a tax calculator that otherwise needs no personal info. If your income is in the £60k–£80k range and you or your partner claim Child Benefit, factor in the HICBC separately.