FOR THE BUSINESS YOU RUN
Your business.
A little less admin.
Free, practical tools for UK freelancers, sole traders and small businesses. Create an invoice, work out your prices and plan for tax.
Free to use · No sign-up · 2026/27 tax tools
YOUR EVERYDAY TOOLKIT
What do you need to do?
Money In
Free UK Invoice Generator
Generate clean, ad-free PDF invoices with your own logo—completely free and no sign-up required. With built-in VAT support, it's perfect for UK businesses. Download your invoice instantly, knowing all data remains private on your device. OwnBoss.co.uk does not store any information you enter.
Your Business Details
For your convenience, your business details are saved in your browser. They are not stored on our servers.
Recommended: Landscape logo (e.g. 400x100px). Max 2MB.
Client Details
Invoice Details
Invoice Items
Payment Terms
Leave blank if you don't want payment details on the invoice.
VAT
Free UK Quote & Estimate Generator
Create clean, ad-free PDF quotes and estimates to send to prospective clients — the same professional format as our invoice generator, with your own logo and optional VAT. It shares your saved business details with the invoice generator, and includes a valid-until date so prices don't stay open-ended. OwnBoss.co.uk does not store any information you enter.
Your Business Details
Shared with the invoice generator above — details saved there appear here automatically. They are saved in your browser only, never on our servers.
Recommended: Landscape logo (e.g. 400x100px). Max 2MB.
Client Details
Quote Details
Quote Items
Notes / Terms (Optional)
VAT
Exchange Rate & Fee Checker
Banks and payment services often charge twice: an upfront fee, plus a worse exchange rate than the real (mid-market) rate.
Find the mid-market rate on Google or XE at the time of the transfer, then compare it with what you actually got.
Paying a supplier abroad or being paid by an overseas client? See the rate you really got and what the transfer cost you in fees and hidden exchange-rate markup.
Mid-market rate: how many EUR you get for 1 GBP.
Costs are shown in the currency you sent and as a percentage of the total paid out. Rates move constantly, so use the mid-market rate from the time of your transfer. For guidance only.
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Is It a Business Expense?
Type in an expense (e.g., "coffee with client", "laptop", "home internet") to see if it's typically tax-deductible.
Business Mileage Calculator
Uses HMRC's approved mileage allowance payments (AMAPs).
• Cars/Vans: 45p/mile for the first 10,000 miles, 25p thereafter.
• Motorcycles: 24p/mile.
• Bicycles: 20p/mile.
Official GOV.UK Rates
Calculate your tax-deductible mileage allowance based on HMRC's approved rates.
Meeting Cost Calculator
Works out the salary cost of everyone's time in a meeting.
Hourly cost per person: Annual salary ÷ (hours per week × 52)
Add employer on-costs (employer NI, pension, etc.) for the true cost. Yearly figures allow for holidays: 46 working weeks.
See what a meeting really costs in people's time, per meeting and over a year.
Hours per week defaults to 37.5 if left blank. Covers salary time only, not travel, room hire or preparation. For guidance only.
Business Energy Cost Calculator
Business energy bills = energy used + standing charges + Climate Change Levy + VAT.
• Small users (under 33 kWh of electricity or 145 kWh of gas a day on average) pay 5% VAT and no Climate Change Levy.
• Everyone else pays 20% VAT plus the levy: 0.801p per kWh from 1 April 2026.
Work out your yearly and monthly business electricity and gas costs, including the VAT rate and Climate Change Levy that apply to you. Take your usage and rates from a recent bill or quote.
Electricity
Gas (leave blank if none)
VAT-registered businesses can usually reclaim the VAT on business energy. Small-user status is worked out from your average daily use; suppliers may also take other factors into account (for example, charities and some home businesses get the lower rate). Estimate only.
Debt-to-Income (DTI) Ratio Calculator
DTI shows how much of your income goes on debt repayments. Lenders use it to judge whether you can afford more borrowing.
Formula: Monthly debt repayments ÷ Gross monthly income × 100
Self-employed? Lenders usually use your profit (from your tax returns), not your turnover.
See how a lender might view your borrowing before applying for a loan, mortgage or finance, and how much you'd need to cut to reach a healthier level.
Monthly Debt Repayments
Rough guide to how lenders may see it:
Under 20%: low — comfortable
20% to 35%: manageable for most lenders
36% to 49%: high — some lenders may limit or refuse
50% or more: very high — most lenders will see this as a risk
Target defaults to 35% if left blank. Every lender sets its own limits and also looks at your credit history and spending. Don't include rent, bills or everyday spending. For guidance only.
Pricing & Profit
Profit Margin Calculator
• Gross Margin: ((Revenue - COGS) / Revenue) * 100. Shows profit before overheads.
• Net Margin: ((Revenue - Total Expenses) / Revenue) * 100. Shows final profit after all costs.
• Markup: ((Revenue - COGS) / COGS) * 100. How much you add on top of cost. A 50% markup is only a 33.33% margin.
Calculate your gross and net profit margins to understand business profitability.
Break-Even Point Calculator
Calculates the number of units you need to sell to cover your costs.
Formula: Fixed Costs / (Price Per Unit - Variable Cost Per Unit)
Find out how much you need to sell to cover all your business costs.
Sales Commission Calculator
• Flat rate: one percentage on the whole sale.
• Tiered: each rate applies only to the slice of sales inside its band, like tax bands. E.g. 5% on the first £10,000, 7.5% on the next £15,000 and 10% on anything above £25,000.
Quickly calculate the commission earned on a sale, at a flat rate or with tiered rates.
Leave the Tier 2 limit blank if you only have two tiers.
Tier 2's limit must be higher than Tier 1's.
Freelance Day Rate Calculator
Why can't you just divide a salary by 260 working days?
• Employees are paid for holidays, bank holidays and sick days — freelancers aren't.
• Not every working day is billable: admin, marketing and finding clients eat time.
• You must cover your own expenses and pension from what you bill.
Work out the day rate you need to charge to hit your target income, once holidays, non-billable time, expenses and pension are accounted for.
Enter your working weeks and billable days per week to work out a day rate.
Based on 0 effective billable days a year — not the 260 weekdays an employee is paid for.
Rates are before Income Tax and National Insurance — use our Self-Employed Tax calculator to estimate those. For guidance only.
Discount & Pricing Calculator
A discount comes straight off your profit, not just your price. A 20% discount on a product with a 40% margin halves your profit per sale, so you need to sell twice as many to make the same profit.
Extra sales needed: (Profit before ÷ Profit after − 1) × 100
See what a discount really costs you and how many more sales a promotion needs to make the same profit.
If you're VAT-registered, enter prices excluding VAT. For guidance only.
Overhead Cost Allocation
Overheads are costs you pay whatever work you do: rent, software, insurance, phone, accountant. Each job needs to carry its share.
Overhead rate: Monthly overheads ÷ billable hours (or units) per month
Price for a margin: Full job cost ÷ (1 − margin %)
Spread your overheads into a rate per hour or per unit, then see the full cost and the right price for a job.
Price a Job (Optional)
Direct costs are things you buy for this job only, such as materials, subcontractors or your own pay for the time.
Use realistic billable hours, not total hours worked — admin and quiet weeks don't earn. If you're VAT-registered, use figures excluding VAT. For guidance only.
Price Elasticity of Demand Calculator
Elasticity measures how much sales change when you change your price.
Formula (midpoint method): % change in sales ÷ % change in price, where each % change is worked out from the average of the before and after figures.
• Above 1: elastic — customers are price-sensitive
• Below 1: inelastic — sales barely move with price
Changed a price? Compare sales before and after to see how price-sensitive your customers are, and what it did to revenue and profit.
Compare the same length of time before and after, e.g. a month each.
Sales can also change because of seasons, competitors or marketing, so treat the result as a guide. Elasticity is shown as a positive number (the size of the effect). If you're VAT-registered, use prices excluding VAT.
Growth Metrics
Return on Investment (ROI) Calculator
ROI measures the profitability of an investment. It helps you decide whether a particular venture (like a marketing campaign or new equipment) is worth the cost.
Formula: (Net Profit / Investment Cost) × 100
Annualised ROI converts the return to a yearly rate so you can compare investments of different lengths: ((1 + ROI)12 ÷ months − 1) × 100
Calculate the return on investment to evaluate the efficiency of a business decision.
Customer Acquisition Cost (CAC)
CAC is the total cost of sales and marketing efforts needed to acquire a new customer. A lower CAC is better.
Formula: Total Marketing & Sales Cost / Number of New Customers
Calculate the cost to acquire a new customer for your business.
Customer Lifetime Value (CLV)
CLV predicts the net profit attributed to the entire future relationship with a customer. A high CLV is a sign of a healthy business with loyal customers.
Simple Formula: Avg. Purchase Value × Avg. Purchase Frequency × Avg. Customer Lifespan
CLV:CAC ratio compares lifetime value with what it costs to win a customer. Around 3:1 or higher is generally seen as healthy; below 1:1 means each customer costs more than they bring in.
Estimate the total revenue your business can expect from a single customer.
Use the CAC calculator if you're not sure.
Burn Rate & Runway Calculator
• Burn Rate: The rate at which a company is spending its capital to finance overhead before generating positive cash flow.
• Runway: How many months your company can operate before it runs out of money.
• Funding needed: extra cash required to reach your target runway.
• Planned hire: adds a new monthly cost from the month you choose, so you can see how it shortens your runway.
Calculate how quickly your company is spending money and how long it can survive.
Planned Hire (Optional)
Use the full cost including employer NI and pension (try the Employer Cost Calculator). Month 0 = starts now.
Inventory Turnover Ratio
This ratio shows how many times a company has sold and replaced its inventory over a given period. A higher ratio generally indicates strong sales.
Formula: Cost of Goods Sold / Average Inventory
Measure how efficiently your business manages its inventory.
Employee Turnover Rate
Calculate the percentage of employees who leave a company within a certain period. High turnover can be costly and indicate underlying issues.
Formula: (Employees Who Left / Avg. No. of Employees) * 100
Calculate your employee turnover rate to gauge workforce stability.
Cost of Goods Sold (COGS) Calculator
COGS is what the stock you actually sold cost you.
Formula: Opening stock + Purchases + Direct costs − Closing stock
Value stock at cost (what you paid), not at selling price.
Work out the cost of the stock you sold over a period from your stock counts and purchases, then see your gross profit, margin and how quickly stock sells.
Direct costs are costs of getting stock ready to sell, such as delivery in, packaging or production labour. Don't include rent, marketing or other overheads.
Period defaults to 365 days (a year) if left blank. If you're VAT-registered, use figures excluding VAT. For guidance only.
Business Health Check
Ten quick questions on profit, cash, customers, pricing and tax. Each answer scores 0, 5 or 10 points, giving a score out of 100.
Your three weakest answers become your priorities, each with a tool to help.
Answer ten quick questions to get a score out of 100, plus the three things to work on first. Nothing is saved or sent anywhere.
0 of 10 answered. Answer all ten to see your score.
A quick self-check for guidance only, not financial advice.
Business Valuation Estimate
Small businesses are often valued as a multiple of their adjusted yearly profit.
Business value: Adjusted profit × multiple
Sale value to you: Business value + cash − debts
The multiple depends on how much the business relies on you, how steady the income is and whether it's growing. The ranges here are rough rules of thumb.
Get a rough idea of what your business might sell for, based on its profit, type, growth, cash and debts.
Add-backs are one-off or personal costs a buyer wouldn't have, e.g. a one-off legal bill or your own car run through the business.
Relies on me: clients come for you personally. Small team: staff or repeat clients, could run without you for a while. Established: recurring income, a team and systems in place.
Business Value:
Sale Value to You (after cash and debts):
An indicative figure only, not a formal valuation. Real prices depend on the buyer, your sector, contracts, assets and how the sale is structured. Speak to an accountant or business broker before selling. Capital Gains Tax may be due on a sale — try our CGT calculator.
Compound Interest & Savings Growth
Compound interest means you earn interest on your interest as well as on the money you put in, so growth speeds up over time.
Monthly additions are added at the end of each month. With yearly compounding, interest is added once a year.
See how business savings, a tax pot or a reserve fund could grow with regular top-ups and compound interest.
Year by Year
| Year | Paid In | Interest | Balance |
|---|
Paid In and Interest are running totals. Assumes a fixed rate and no withdrawals. Interest on business savings counts as taxable income; personal savings interest may be covered by your Personal Savings Allowance or an ISA. For guidance only.
Tax
PAYE Salary & Take-Home Pay Scottish taxpayers (tax code starting with S) pay Scottish Income Tax on wages, with six bands for 2026/27: 19% starter, 20% basic, 21% intermediate, 42% higher, 45% advanced and 48% top. National Insurance is the same across the UK.
Estimate your take-home pay after Income Tax and National Insurance deductions.
Uses standard tax code 1257L (S1257L in Scotland). Assumes the standard Personal Allowance with no £100,000 taper. Does not account for student loans, pensions or other deductions.
Employer Cost Calculator
An employee costs more than their salary:
• Employer NI: 15% on earnings above £5,000 a year.
• Pension: auto-enrolment requires a minimum 3% employer contribution.
• Plus holiday cover, equipment and training on top — not included here.
Thinking of hiring? See the true annual cost of an employee once employer National Insurance and pension contributions are added to their salary.
That's 0.0% on top of the salary. Use the PAYE card alongside this to see what the employee actually takes home.
Uses 2026/27 employer NI (15% above £5,000 a year). Excludes recruitment, equipment, training, holiday/sick cover, benefits and payroll costs. For guidance only — speak to an accountant before hiring.
Self-Employed Tax Calculator
Estimate your UK Income Tax and National Insurance. For illustrative purposes only.
Note: Class 2 NIC is no longer compulsory for most traders, though can be paid voluntarily for pension credits. Assumes the standard Personal Allowance with no £100,000 taper.
Corporation Tax Calculator
Estimates tax for limited companies.
• 19% Rate: For profits up to £50,000.
• 25% Rate: For profits over £250,000.
• Marginal Relief: Applies to profits between these thresholds.
Estimate your UK Corporation Tax for a limited company.
Includes marginal relief for profits between £50,000 and £250,000 (standard 3/200 fraction — an effective 26.5% marginal rate in that band). Assumes a 12-month accounting period and no associated companies, which reduce these limits. For guidance only — speak to an accountant.
Dividend Tax Calculator
Estimate the personal tax you'll pay on dividend income.
Assumes standard Personal Allowance. Does not account for complex tax situations.
Salary vs Dividend Optimiser
Many director-shareholders take a small salary plus dividends because:
• Dividends don't attract National Insurance.
• A salary around the £12,570 Personal Allowance keeps your State Pension record ticking over.
• Salary (and employer NI) is deductible against Corporation Tax; dividends are not.
Director of a limited company? Compare taking a small salary plus dividends against taking it all as salary, and see which leaves more in your pocket.
Your salary (plus employer NI) is more than the available profit, so there's nothing left to pay as dividends.
Estimates use 2026/27 rates and assume: full profits extracted as dividends, standard Personal Allowance with no taper, no pension contributions, student loans or other income, and sufficient distributable reserves. Employer NI is 15% above £5,000. Corporation Tax uses the same estimate as our Corporation Tax calculator. For guidance only — speak to an accountant before deciding.
Sole Trader vs Limited Company
Compares the two most common ways to run a UK business:
• Sole trader: you pay Income Tax and Class 4 NI on all profits.
• Limited company: a tax-efficient £12,570 salary plus dividends, after employer NI and Corporation Tax.
See which structure would leave more in your pocket at your level of profit, using 2026/27 rates.
Estimates use 2026/27 rates and assume: a tax-efficient £12,570 director's salary with all remaining profit extracted as dividends, standard Personal Allowance with no taper, no pension contributions, student loans or other income. Ignores accountancy costs (typically £600–£1,500 a year for a limited company), the extra admin burden and IR35 — these can flip the answer in marginal cases. For guidance only — speak to an accountant before deciding.
Capital Gains Tax (CGT) Calculator
CGT is a tax on the profit when you sell an asset that has increased in value.
• Rates depend on your income tax band and the asset type.
• Annual Exempt Amount: You only pay tax on gains above this allowance.
Estimate the Capital Gains Tax on profits from selling a business asset.
Uses current rates (18%/24%) for standard assets. Assumes full Annual Exempt Amount is available.
UK VAT Calculator
Quickly calculate VAT for invoices and expenses based on the standard 20% rate or a custom rate.
Late Payment Interest Calculator
This calculator determines the total amount due based on UK law:
• Statutory Interest: Calculated daily at 8% + the current Bank of England base rate.
• Compensation Fee: A one-off charge (£40, £70, or £100) based on the invoice value.
Calculate statutory interest and compensation on overdue commercial invoices.
MTD for Income Tax Checker
Making Tax Digital (MTD) for Income Tax is replacing the annual Self Assessment return in stages, based on gross qualifying income:
• April 2026: over £50,000 (already in force).
• April 2027: over £30,000.
• April 2028: over £20,000.
Check if — and from when — you must follow Making Tax Digital for Income Tax, based on your combined gross income from self-employment and property.
- Quarterly updates — a summary of income and expenses sent to HMRC every three months through MTD-compatible software.
- Digital records — business income and expenses must be kept digitally rather than on paper.
- Final declaration — a year-end submission through your software replaces the Self Assessment return.
Based on gross qualifying income (turnover and rents before expenses) — not profit — combined across all your self-employment and property income and tested per person. HMRC applies each threshold to the tax return filed just before the start year, and once mandated you stay in MTD until your income is below the threshold for three consecutive tax years. Exemptions and deferrals exist — check the latest HMRC guidance. For guidance only — speak to an accountant.
Side-Hustle Trading Allowance Checker
Everyone gets a £1,000 tax-free trading allowance each tax year:
• £1,000 or under: no tax and normally nothing to report.
• Over £1,000: you can deduct either the £1,000 allowance or your actual expenses — never both.
Earning on the side? Check whether the £1,000 trading allowance covers you — and if not, whether the allowance or your actual expenses gives the lower tax bill.
Your expenses exceed your income, so you'd make a loss. The trading allowance can never create a loss, so actual expenses is the route here — and loss relief may be available.
Work out the Income Tax and NI on that profit with our Self-Employed Tax Calculator.
The £1,000 trading allowance applies to your total trading income per person, per tax year — not per hustle — and you can't use both the allowance and actual expenses. A separate £1,000 property allowance exists for rental income. The trading allowance doesn't apply to income from your own limited company or a partnership. For guidance only — speak to an accountant.
Rolling 12-Month VAT Threshold Tracker
The VAT test isn't your tax year or accounting year:
• At the end of every month, HMRC looks at your VAT-taxable turnover for the previous 12 months.
• Over £90,000 and you must register.
Log your monthly VAT-taxable turnover and see your rolling 12-month total against the £90,000 registration threshold — with a projected crossing month if your trend continues.
Your figures stay in your browser and are never sent to or stored on our servers — clear them any time with the button above.
If you go over £90,000, you must register within 30 days of the end of the month you exceeded the threshold. A separate forward-look test applies if you expect to exceed £90,000 in the next 30 days alone. Taxable turnover includes standard, reduced and zero-rated sales but excludes exempt supplies. The deregistration threshold is £88,000. For guidance only — speak to an accountant.
Companies House Deadline Calculator
Every limited company has recurring legal deadlines:
• Annual accounts: first accounts 21 months after incorporation, then 9 months after each year-end.
• Confirmation statement: 14 days after each 12-month review period.
• Corporation Tax: payment 9 months + 1 day, CT600 filing 12 months after the period end.
Enter your incorporation date and see your next accounts, confirmation statement and Corporation Tax deadlines — then add them to the reminders strip at the top of the page with one click.
Dates assume a standard private limited company with no shortened or extended ARD changes. HMRC splits a long first accounting period into two Corporation Tax periods — the calculator shows the year-end based dates, so your first CT deadlines may differ slightly. Companies House and HMRC deadlines are legal obligations with automatic penalties — always verify against your Companies House record. For guidance only — speak to an accountant.
Getting Started & Registration
Understand your legal obligations and how to set up your business structure in the UK.
- GOV.UK: Set Up a Business Official guidance on business structures and registration.
Funding and Grants
Access finance to grow. Explore UK government schemes and funding opportunities.
- Start Up Loans Scheme Government-backed personal loans up to £25,000 for new businesses.
- Innovate UK Funding Funding for innovative projects and businesses.
- Find a Grant (GOV.UK) Official government grant search service.
Marketing Tools
Effectively promote your business to your target audience with these free tools.
- Google Analytics Track website traffic and user behaviour.
- Canva Create professional graphics and marketing materials.
- Mailchimp Manage email marketing campaigns.
Accounting & Finance
Keep track of your finances with helpful free tools, many compatible with UK tax rules.
- Wave Free accounting software for freelancers and small businesses.
- Zoho Books Free plan with invoicing and expense tracking.
Legal & Compliance
Understand your obligations and ensure your business complies with UK regulations.
- GOV.UK: Business Support Comprehensive government information and guidance.
- ACAS Free, impartial advice on employment law.
- Intellectual Property Office (IPO) Official body for patents, trademarks, and copyright.
Landlord & Property Resources
Professional tools and guidance for property entrepreneurs and landlords in the UK.
- Professional Tenancy Agreements Create legally compliant Assured Shorthold Tenancy (AST) agreements for residential properties.
Networking in the UK
Connect with fellow entrepreneurs, find mentors, and build valuable relationships.
- BNI (Business Network International) Structured referral marketing programme with local chapters.
- Federation of Small Businesses (FSB) Offers networking, support, and a powerful voice in government.
Business Training & Skills
Enhance your business acumen with free online courses and training programmes.
- Coursera Free courses from top universities worldwide.
- FutureLearn Access online courses from leading UK institutions.
- The Prince's Trust Enterprise Free training and mentoring for young UK entrepreneurs.
Essential Freelancer Tools
Streamline your workflow and manage your freelance business effectively.
- Toggl Track Simple time tracking to log hours for projects.
- Trello Flexible project management with boards and cards.
- Slack Communication platform for teams and clients.
Mental Health & Wellbeing
Running a business is demanding. Access free resources to support your mental health.
- Samaritans Free, confidential emotional support 24/7.
- Mind Information and support for mental health problems.
- NHS Mental Health Services Access free NHS support and talking therapies.
Additional Useful Resources
For those managing business vehicles or personal transport, check out our sister site, PetrolPrices.co.uk , where you can find the cheapest fuel prices in your local area. Saving on fuel costs can help boost your business's bottom line.
How These Tools Work
Up-to-date UK rates
Built on the 2026/27 tax year figures for Income Tax, National Insurance, VAT, Corporation Tax, dividends and Capital Gains. Rates last reviewed: 24 October 2026.
Your figures stay with you
Every calculation runs in your own browser. Nothing you type is sent to us or anyone else. Tools that remember things, like saved invoice details or the VAT tracker, keep them on your device only, and you can clear them at any time.
Formulas you can check
Tap the icon on a tool to see the formula and assumptions behind it, so you can check the answer or work it through yourself.
UK Tax Rates & Thresholds 2026/27
The key figures behind our calculators for the 2026/27 tax year (6 April 2026 to 5 April 2027), all in one place.
Personal Allowance
£12,570
Tax-free income each year. Reduced by £1 for every £2 earned over £100,000.
Take-home pay calculatorIncome Tax
20% / 40% / 45%
Basic rate to £50,270, higher rate to £125,140, additional rate above (England, Wales & NI).
Take-home pay calculatorScottish Income Tax
19% to 48%
Six bands on wages for Scottish taxpayers: starter, basic, intermediate, higher, advanced and top.
Take-home pay calculatorEmployee National Insurance
8%
On earnings between £12,570 and £50,270, then 2% above.
Take-home pay calculatorEmployer National Insurance
15%
On salaries above £5,000 a year. Employment Allowance cuts the bill by up to £10,500 if eligible.
Employer cost calculatorSelf-Employed (Class 4) NI
6%
On profits between £12,570 and £50,270, then 2% above.
Self-employed tax calculatorCorporation Tax
19% / 25%
19% on profits up to £50,000, 25% over £250,000, with marginal relief in between.
Corporation Tax calculatorDividend Tax
£500 allowance
Then 10.75% basic rate, 35.75% higher rate and 39.35% additional rate.
Dividend tax calculatorCapital Gains Tax
£3,000 exempt
Annual exempt amount, then 18% (basic rate) or 24% (higher rate).
Capital Gains Tax calculatorVAT Registration
£90,000
Rolling 12-month taxable turnover. Deregistration threshold £88,000. Standard rate 20%.
VAT threshold tracker calculatorMaking Tax Digital (Income Tax)
Over £50,000
Self-employed and property income now. Over £30,000 from April 2027, over £20,000 from April 2028.
MTD checker calculatorTrading Allowance
£1,000
Tax-free side income a year. Over that, deduct the allowance or your actual expenses.
Trading allowance calculatorLate Payment Interest
11.75%
Bank of England base rate (3.75%) + 8% on late business invoices, plus fixed compensation. Rate for 1 July – 31 December 2026.
Late payment interest calculatorBusiness Mileage
45p / 25p
Per mile by car or van: 45p for the first 10,000 business miles, 25p after.
Mileage calculatorClimate Change Levy
0.801p per kWh
On business electricity and gas from 1 April 2026. Small users pay none, and 5% VAT instead of 20%.
Energy cost calculatorRates are for England, Wales and Northern Ireland unless stated. Always check the latest figures on GOV.UK before making decisions. For guidance only.
Frequently Asked Questions
Are the Own Boss tools really free?
Yes. Every tool on OwnBoss.co.uk — including the invoice generator and all tax calculators — is completely free to use, with no sign-up, no account, and no hidden charges.
Do you store any of the information I enter?
No. Everything you type stays on your own device. Optional features like saved invoice details and deadline reminders use your browser's local storage only — nothing is ever sent to or stored on our servers.
Which tax year do the calculators use?
The tax calculators currently use the UK 2026/27 tax year rates and thresholds, and are updated each year when new rates come into effect.
Can I create a VAT invoice with the invoice generator?
Yes. The free invoice generator lets you add your VAT number and apply 20% VAT to your invoice with one click, then download it as a clean, ad-free PDF with your own logo.
Can I create a quote or estimate instead of an invoice?
Yes. Our free quote & estimate generator creates a professional PDF headed QUOTATION, with your logo, optional VAT, notes or terms, and a valid-until date (30 days by default) so your prices don't stay open-ended. It clearly states it isn't a VAT invoice or a demand for payment, and it shares your saved business details with the invoice generator.
How do I work out my freelance day rate?
Don't just divide a salary by 260 working days — employees are paid for holidays and sick days, and don't cover business costs. Instead, add your target income, expenses and pension together, then divide by your realistic billable days (working weeks × billable days per week — often around 184 rather than 260). Our free Freelance Day Rate Calculator does this for you and shows the equivalent hourly rate.
How much does it cost to employ someone in the UK?
More than their salary. For 2026/27, employers pay 15% National Insurance on earnings above £5,000 a year, plus a minimum 3% auto-enrolment pension contribution — typically adding 15% or more on top of the gross salary, before recruitment, equipment and holiday cover. Our free Employer Cost Calculator shows the total annual cost and percentage uplift for any salary, including the effect of the Employment Allowance.
Should I pay myself a salary or dividends from my limited company?
Many UK director-shareholders take a small salary (often around the £12,570 Personal Allowance) topped up with dividends, because dividends don't attract National Insurance. Our free Salary vs Dividend Optimiser compares your chosen mix against taking everything as salary using 2026/27 rates. Always confirm your own position with an accountant.
Should I set up as a sole trader or a limited company?
It depends mostly on your level of profit. Sole traders pay Income Tax and Class 4 National Insurance on all profits, while a limited company pays Corporation Tax and the director typically takes a small salary plus dividends. Our free Sole Trader vs Limited Company comparison shows the take-home for both structures at your profit level using 2026/27 rates. Remember a limited company also brings accountancy costs and extra admin, which can outweigh a small tax saving — always confirm with an accountant.
Do I need to use Making Tax Digital (MTD) for Income Tax?
It depends on your combined gross income from self-employment and property — turnover and rents before expenses, not profit. Over £50,000, MTD for Income Tax became mandatory in April 2026, so you should already be following it. Over £30,000 you join from April 2027, and over £20,000 from April 2028. At £20,000 or under you're not currently caught and standard Self Assessment continues. Our free MTD for Income Tax Checker tells you your position and start date instantly.
Do I have to pay tax on my side hustle?
Not if your gross trading income is £1,000 or under for the tax year — the trading allowance covers it and there's normally nothing to report. Over £1,000, you currently need to register for Self Assessment, and you can reduce your taxable profit by either the £1,000 allowance or your actual expenses, whichever is lower — never both. The government has announced the reporting threshold will rise to £3,000 with a simpler online service for smaller amounts, but this isn't in force yet. Our free Side-Hustle Trading Allowance Checker shows which option saves you more.
When do I have to register for VAT?
When your VAT-taxable turnover for the last 12 months goes over £90,000 — checked at the end of every month on a rolling basis, not your tax year. You then have 30 days from the end of that month to register with HMRC. You must also register if you expect to exceed £90,000 in the next 30 days alone. The deregistration threshold is £88,000. Our free Rolling 12-Month VAT Threshold Tracker keeps the running total for you in your browser and projects when you'd cross at your current run-rate.
When are my company's annual accounts and confirmation statement due?
For a private limited company, your first annual accounts are due 21 months after incorporation, and subsequent accounts 9 months after each accounting year-end. A confirmation statement is due 14 days after the end of each 12-month review period. Corporation Tax is paid 9 months and 1 day after the end of the accounting period, with the CT600 return due 12 months after. Our free Companies House Deadline Calculator works out your next dates and can add them to the reminders strip at the top of the page.
Do these tools replace an accountant?
No. The calculators are for estimation and guidance only and don't constitute financial or tax advice. For your specific circumstances, always check the latest HMRC guidance or speak to a qualified accountant.
Disclaimer
The tools and calculators provided on OwnBoss.co.uk are for general informational and estimation purposes only and do not constitute financial, legal, accounting, or tax advice. All generated documents, including invoices and summaries, are intended as templates or guidance only. We do not guarantee their legal enforceability or suitability for your specific circumstances. Always review and customise documents as needed, and consult a qualified professional (such as an accountant or legal advisor) where appropriate. Tax laws and rates are subject to change; always refer to the latest official guidance from HMRC. Use of these tools is at your own risk.
Reminder tools are provided for convenience only and do not guarantee the accuracy or completeness of any deadlines.
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