2026/27 HMRC RatesFree
Employed vs Self-Employed Calculator
Compare your take-home pay as an employee vs self-employed. See the tax differences and decide which employment type is better for your situation.
Compare Employment Types
Employed
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Annual take-home
Self-Employed
£NaN
Annual take-home
Difference
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Employed wins (0.0%)
Employed Breakdown
| Gross Salary | £50,000 |
| Pension Contribution | -£2,500 |
| Income Tax | -£NaN |
| Employee NI (Class 1) | -£NaN |
| Take Home Pay | £NaN |
| Effective Tax Rate | NaN% |
| Total Employer Cost | £50,075 |
Self-Employed Breakdown
| Gross Income | £50,000 |
| Business Expenses | -£5,000 |
| Pension Contribution | -£2,500 |
| Net Profit | £42,500 |
| Income Tax | -£NaN |
| Class 2 NI | -£182 |
| Class 4 NI | -£1,796 |
| Take Home Pay | £NaN |
| Effective Tax Rate | NaN% |
Key Differences
Employed Benefits
- • Employer pays NI contributions
- • Automatic pension enrollment
- • Holiday pay, sick pay, maternity/paternity
- • Employment rights and protections
- • No admin burden for tax returns
Self-Employed Benefits
- • Deduct business expenses
- • Lower NI rates (Class 2 & 4)
- • Flexibility and independence
- • Potential for higher earnings
- • Can work for multiple clients