Set out below are the important changes in self employed taxation for the year from April 2019.

Self employed tax rates

The 2019-20 tax rates and allowances are shown in the tables below.  If you pay income tax in Scotland the rates are different.

The Triginta self employment income tax calculator works out the amount of tax you have built up at any point in the year taking account of changes in your turnover and expenses and how much of your allowances and self employed tax brackets you have used.

The tables below are based on the standard personal allowance which is £12,500 for 2019-20.

UK except Scotland
Up to £12,500 Nil
£12,500to £50,000 20%
£50,000 to £150,000 40%
Over £150,000 45%

Scotland
Up to £12,500 Nil
£12,500 to £14,549 19%
£14,549 to £24,944 20%
£24,944 to £43,430 21%
£43,430 to £150,000 41%
Over £150,000 46%

National Insurance for self employed people

For 2019-20 the National Insurance rates for self employed people are shown below.

Class 2 National Insurance is a fixed rate of £3.00 per week in 2019-20 as long as your profits are above £6,365.

Class 4 National Insurance is

  • 9% of your profits between £8,632 and £50,000, and
  • 2% of profits above £46,350

The Triginta self employed tax and national insurance calculator works out how much Class 2 and Class 4 NICs you have built up at any point in the year, taking account of changes in your turnover and expenses and how much of your allowances and bands you have used.

The government initially proposed that class 2 self employed NI contributions would be abolished but this proposal was withdrawn in Budget 2018.

Other Changes in 2019-20

The other important change affecting self employed people is the introduction of Making Tax Digital, the government’s aim of having all tax data submitted online, the first stages of which are coming in from April 2019. 

At this stage this will only apply to VAT, and is only required for those who are above the VAT threshold of £85,000 turnover.

Making Tax Digital will not be rolled out for other taxes, including income tax for self employed people, until 2020 at the earliest.  A lot will depend on the success of the VAT pilot but even if this works out well the timing looks difficult for a 2020 start date.