Small Business Owner Tax Calculator United Kingdom
Estimate what you could get back as a small business owner in United Kingdom. Applies United Kingdom marginal rates including nation tax and the National Insurance (Class 1). Free, and no sign-up.
What small business owners can claim in United Kingdom
- Annual Investment Allowance on equipment
- Capital allowances on business vehicles
- Business rates and rent
- Staff salaries and employer NIC
- Employment Allowance on NIC bill
- Stock and raw materials
- Business insurance premiums
- Accountancy and legal fees
- Advertising and marketing costs
- Use of home as office
- Simplified mileage rate 55p
- Bad debts written off
- Bank charges and loan interest
- Class 2 and 4 National Insurance
In the UK, employees can only claim expenses incurred wholly, exclusively and necessarily in the performance of their duties (usually via form P87 or Self Assessment, and often as an agreed HMRC flat rate expense under EIM32712), whereas self-employed sole traders deduct a much wider range of allowable business expenses, capital allowances and simplified flat rates.
You can only claim the work-related portion, you must have spent the money yourself without reimbursement, and you need a record to prove it.
Frequently asked questions
What can a small business owner claim on tax in United Kingdom?
Commonly claimed deductions include annual investment allowance on equipment, capital allowances on business vehicles, business rates and rent, staff salaries and employer nic. In the UK, employees can only claim expenses incurred wholly, exclusively and necessarily in the performance of their duties (usually via form P87 or Self Assessment, and often as an agreed HMRC flat rate expense under EIM32712), whereas self-employed sole traders deduct a much wider range of allowable business expenses, capital allowances and simplified flat rates.
How much tax does a small business owner pay in United Kingdom?
It depends on your income and your nation. The calculator applies United Kingdom marginal rates including nation tax and the National Insurance (Class 1).
Do I need to sign up to use this calculator?
No. This calculator is completely free and requires no account. Nothing you enter is saved.
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Estimate only — not tax advice. Confirm with the HMRC or a registered tax professional.