Your in-app Self Assessment tax estimate calculates how much Income Tax and National Insurance you might owe HMRC as a self-employed sole trader. By analysing your real-time profits, the app gives you a clear indication of what to expect before the 31 January filing deadline. This enables you to comfortably set aside the right funds in your tax pot throughout the year, keeping your business stress-free. 📊
Why tracking your estimate matters
As a sole trader, you must submit a Self Assessment tax return by 31 January each year to report and pay tax on your earnings from the previous tax year (which officially ends on 5 April). Because managing your own tax liabilities can feel daunting, the live estimate acts as a visual guide, showing you exactly how much to move into your digital Tax pot so you are never caught off guard by an unexpected bill. 📆
Who can use the tax estimate?
The built-in tax estimator is specifically designed for standard, self-employed sole traders. Please note that the app does not currently support automated calculations or estimates for:
Construction Industry Scheme (CIS) contractors.
Furnished holiday lettings.
UK property or rental businesses.
Where to find your tax estimate
You can view your real-time tax calculation at any time by following these simple steps:
Open the app and tap the Accounting tab at the bottom of the screen. 📲
Tap Tax estimate.
Understanding the app's calculation assumptions
To provide you with an immediate prediction without requiring complex configuration, the app uses standard UK tax rules and makes a few baseline assumptions:
The calculation relies exclusively on the business income and expenses recorded directly through your business account transactions.
The estimate looks at your profit to date and assumes your business will continue to earn revenue at a consistent rate for the remainder of the tax year. 📈
Net profits are tracked using traditional accounting rules (accruals basis) rather than a cash basis, meaning calculations are based on invoice or bill dates rather than the day money changes hands.
The app assumes you receive the standard UK Personal Allowance, which is the baseline amount of income you can earn before paying tax. This allowance reduces by £1 for every £2 that your adjusted net income rises above £100,000.
The calculation assumes you have no student loan repayments, no balancing payments from previous years, and no carried-forward business losses to offset your current profits.
Because individual tax situations can vary depending on external income or investments, you can double-check the latest statutory brackets, thresholds, and class rates by visiting the official GOV.UK Self Assessment guidance or speaking directly with your professional accountant. 🤝