Not sure exactly how much you earn in self-employed income across the tax year? No problem! You can use our earnings calculator to generate an estimate, and we can take it from there.
Plug in your average hourly, daily, or weekly earnings, as well as the approximate number of hours/days and weeks you work a year. The resulting annual self-employed income estimate is all we need to start calculating your effective tax rate.
💡 If your sole trader income is incredibly variable, we totally understand! You can skip this step, and we’ll use the average earnings of similar sole traders as a starting point.
Don’t worry about being super precise – once you begin earning through your Hnry Account, our tax calculations will adjust accordingly. Sorted!
Frequently Asked Questions:
Why does Hnry need an estimate of my income?
We use your income estimate as a starting point for our tax calculations.
Hnry calculates and sets aside Income Tax, National Insurance contributions, and student loan repayments (if applicable) from your very first pay.
Here’s where the magic is though – the system automatically updates as you earn. If your income fluctuates during the year, Hnry’s tax calculations immediately adjust accordingly.
We also take into account any allowable expenses you raise and pass on any tax savings you’re eligible for in real time!
What happens if I can’t provide an income estimate?
That’s absolutely fine – we completely understand that for many sole traders, the nature of the game means your income isn’t predictable. It’s actually one of the reasons Hnry was built – as a way to calculate taxes for people with irregular income.
If you really don’t know how much you might earn this tax year, we’ll use the average earnings for your work type to get started.
What happens if I earn more (or less) than I estimate?
Don’t worry – we don’t treat your estimated earnings as the be-all and end-all!
Once you start earning through your Hnry Account, we’ll get a better idea of your earnings level and adjust our tax calculations to match.
Should my income estimate include allowable expenses?
No – we’re after your gross pre-tax income, before allowable expenses are deducted.
This makes it easier and more accurate to adjust your tax rate based on allowable expenses you raise throughout the tax year, and pass on any resulting tax savings. Best for us to start with essentially a clean slate.
If you have any pre-Hnry expenses you’d like to raise, you can raise them one by one in the Hnry App, or in bulk via CSV template.
About Hnry
Hnry is an award-winning app and tax service designed to help sole traders with their financial admin.
For just 1% +VAT of your self-employed income, capped at £600 +VAT a year, Hnry will calculate and pay all your taxes and whatnot for you, including:
- Income Tax
- VAT (if applicable)
- National Insurance contributions
- Student loan repayments (if applicable)
- Private pension contributions (optional)
We also complete and file your Self Assessment for you, including claiming any tax relief you might be entitled to. It’s all part of the service!
More importantly, we free up thousands of hours for sole traders to focus more on what they do best – their jobs. Hnry is on a mission to make self-employment simple, affordable, and accessible for anyone.