Self-employed carers and live-in carers are taxed on their profit — care income minus allowable costs like travel between clients, training, DBS checks, insurance, phone, uniform or PPE and a share of home costs.
Whether you work through an introductory agency or directly for clients, you report your profit and pay income tax plus Class 4 National Insurance.
If your total income for the year is below the £12,570 personal allowance, you pay no income tax. If your care income is under £1,000, the trading allowance usually means you don't need to report it at all. Class 4 National Insurance only starts once your profit passes £12,570.
Travel between clients, training and DBS checks, professional insurance, your phone, uniform or PPE, and a share of home costs for any admin you do from home. See the full list above.
No — Carer's Allowance is a separate state benefit with its own earnings limit. This calculator is for the income tax on self-employed care work, not the benefit.
On your profit — income minus allowable expenses. You pay income tax above your personal allowance, plus Class 4 National Insurance on profit above the threshold.
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