Self Employed

This calculator is to be used as an estimation only based on information given here. It does not take into account any of your personal circumstances and can only be used as a rough indicator.

The profit threshold test

You must have trading profits/partnership trading profits of less than £50,000 with more than half of your income coming from self-employment.

In one of two ways: either:

  • An individual has trading profits/partnership trading profits of less than £50,000 in 2018/19; and
  • These profits constitute more than half of your taxable income.

  Or

  • Having average trading profits in the previous three tax years (2016/17, 2017/18 and 2018/19) of less than £50,000; and
  • These profits make up over half of your average taxable income in the same period.
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