HMRC Guidance for Self-Employed Workers

Self-Assessment is the system HMRC uses to collect Income Tax from self-employed individuals. You must file a tax return if your self-employment income is over £1,000.

• File your Self-Assessment tax return — GOV.UK
• Register for Self-Assessment — GOV.UK
• Self-Assessment deadlines — 31 January for online filing
• Understanding what you owe — GOV.UK

HMRC publishes the current tax rates and personal allowance thresholds. Our calculator uses the 2024/25 & 2025/26 rates.

• Income Tax rates and allowances — GOV.UK
• Current and previous tax years — GOV.UK
• Personal Allowance — £12,570 for 2024/25 & 2025/26

Self-employed workers pay Class 2 and Class 4 National Insurance contributions based on their profits.

• Self-employed National Insurance rates — GOV.UK
• Who pays Class 2 and Class 4 NI — GOV.UK
• Voluntary NI contributions — fill gaps in your record

HMRC allows you to deduct genuine business expenses from your self-employment income before calculating tax. Common allowable expenses for taxi drivers, delivery workers and couriers:

• Expenses if you're self-employed — GOV.UK
• Simplified expenses (flat rate) — vehicle expenses, working from home
• Vehicle expenses for driving for work — fuel, insurance, maintenance
• Capital allowances for vehicles — buying a vehicle for your business

If you're self-employed and on Universal Credit, the DWP uses your earnings and expenses to calculate your entitlement. The Minimum Income Floor (MIF) applies after a start-up period.

• Self-employed and Universal Credit — GOV.UK
• What you'll get from Universal Credit — standard allowance & extras
• How earnings affect your payments — 55p deduction per £1
• UC and self-employment: technical guide — DWP guidance

• Contact HMRC — phone, online chat, or post
• HMRC Business Income Manual — detailed guidance
• HMRC GOV.UK page — main portal