What this calculator does

Compare estimated take-home pay for PAYE employees and self-employed workers in the UK to highlight how tax and National Insurance rules affect net income under common scenarios.

Who should use this calculator

Employees considering self-employment, contractors comparing net pay, and advisors helping clients evaluate employment models will find this comparison useful for high-level planning.

How this calculator works

The interactive client simulates simplified tax and National Insurance treatments for both PAYE and self-employed scenarios, applying standard rates and thresholds to compute comparative take-home estimates. It runs client-side for a responsive, privacy-first experience.

How to interpret your result

Results are indicative comparisons showing approximate net differences. They do not replace professional tax advice and omit many business expenses, allowable deductions, and advanced tax planning considerations.

Example

For the same gross income, a PAYE employee and a self-employed contractor may see different net outcomes due to differences in National Insurance classes, deductible business expenses, and allowable reliefs. Use the interactive client to explore examples.

Limitations & disclaimer

This comparison is high-level and omits detailed business tax rules, VAT, and contractor-specific allowances. Consult an accountant or HMRC for precise tax treatment and compliance guidance.