If you’re self-employed, then keeping track of your tax responsibilities is already a hassle. Understanding your Self Employed Tax Code can feel even more confusing. Why do you have a tax code if you don’t receive a regular salary from an employer? And what does your code actually tell HMRC about how your income is taxed?
The reason is that even as a self-employed individual, you may still receive income that’s taxed through PAYE. This includes part-time employment, pensions, or benefits, and that’s where your tax code comes in. Knowing how your code works helps you avoid unexpected bills, incorrect deductions, and headaches at the end of the year.
In this article, we will break down what a self employed tax code means and how to check it using HMRC tools. So let’s get into it!
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What Is a Tax Code? Briefly Explained
A Tax Code in the UK is a combination of numbers and letters used by HMRC. It tells an employer or pension provider how much income tax to deduct through the PAYE system.
Although a self employed tax code doesn’t apply to your business profits, it still plays a role if you receive PAYE income.
Do Tax Codes Apply To The Self-Employed?
Self-employed individuals do not have a tax code for the income earned on a self-employment basis. Well, that income is taxed through Self Assessment rather than PAYE.
However, a self employed tax code can still exist when you have:
- A part-time or temporary PAYE job
- A private or workplace pension
- Tax collected through PAYE for a previous Self Assessment bill
This is why understanding your self employed tax code HMRC applies is so important.
What Key Information Should the Self-Employed Individuals Keep in Mind?
Self-employed individuals should also keep the following key information in mind:
No Tax Code for Self-Employment Income
If self-employment is your only income, HMRC will not issue a PAYE tax code for it. In addition to that, your self employed tax code only applies to PAYE income.
Unique Taxpayer Reference (UTR)
Once registered, HMRC provides a UTR, which is separate from your self employed tax code and is used for Self Assessment.
Self Assessment Responsibilities
You calculate and report your profits annually. The self employed tax code does not replace this process.
Multiple Income Sources
If you earn PAYE income alongside self-employment, your self-employed tax code applies only to the PAYE portion.
Paying Tax Through Your Tax Code
In some cases, HMRC may collect a small Self Assessment bill by adjusting your self employed tax code, provided eligibility conditions are met.
You can register for Self Assessment and get your UTR, or access your personal tax account via the HMRC online portal or the HMRC app to manage your tax affairs.
Explain the List of Tax Codes And What They Mean?
Understanding the list of tax codes and what they mean helps you spot errors in your self employed tax code.
L
It indicates you are entitled to the standard tax-free Personal Allowance
BR
All the income from this source is taxed at the basic rate (20%) with no Personal Allowance applied. It is common to have a second job or a pension.
D0
Income sourced from this is taxed at the higher rate (40%).
D1
All the income sourced from it is taxed at the additional rate (45%).
K
Your untaxed income or benefits are worth more than your Personal Allowance, so extra tax is calculated.
M
This means you have received a transfer of 10% of your partner’s Personal Allowance (Marriage Allowance)
N
You have transferred 10% of your Personal Allowance to your partner (Marriage Allowance).
T
Other calculations are included to work out your Personal Allowance (e.g., income over £100,000).
NT
No tax should be deducted from this income.
S
Your tax is calculated using Scottish rates.
C
Your tax is calculated using Welsh rates.
W1/M1/X
This is an emergency tax code used temporarily when HMRC does not have enough information.
You can review these using a tax code checker or the HMRC tax code checker online. If you believe your code is incorrect, you should contact HMRC to fix it and avoid over or underpaying tax.
What is a UTR (Unique Taxpayer Reference)?
A UTR is a unique 10-digit number issued by HMRC. Moreover, HM Revenue and Customs use it to identify individuals and organisations for tax purposes. It is different from your self employed tax code and is used solely for filing tax returns and communicating with HMRC. You should know the following key features about your UTR:
It Is Unique
Each individual and business has their own specific UTR.
It is Personal
You should keep your UTR safe and not share it with anyone other than your accountant, the bank (for certain accounts), or HMRC.
How to Get One
When you register for Self Assessment with HMRC, you are automatically issued a UTR.
When You Need It
You will use this number when you fill out your tax return forms and interact with HMRC regarding your taxes.
How Do I Fulfil My Tax Responsibilities As a Self Employed Person Without a Tax Code?
Even without a PAYE tax code, you must:
- Register for Self Assessment
- Keep accurate income and expense records
- File an annual tax return
- Pay Income Tax and National Insurance
Your self employed tax code only becomes relevant if PAYE income is involved.
How to Find Your Tax Code?
If you have PAYE income alongside self-employment, you can find your self employed tax code using:
- Your Personal Tax Account online
- Payslips from your employer
- HMRC tax code notice (P2)
- HMRC app
- P45 or P60 forms
These tools also help when going from self-employed to employed tax code, ensuring your allowances are applied correctly.
What Is a Self-Assessment Tax Return?
A Self Assessment tax return reports all income, including self-employment, PAYE income linked to your self employed tax code, pensions, and other earnings. HMRC uses this information to calculate your final tax bill.
Key Self-Assessment Deadlines
Meeting deadlines ensures your self employed tax code adjustments (if applicable) are processed correctly:
| Date | Deadline |
| 5 October 2025 | Deadline to register for Self Assessment if you haven’t filed online before. |
| 31 October 2025 | Deadline for HMRC to receive your paper tax return. |
| 30 December 2025 | Deadline to file your online return if you want the tax you owe to be collected through your PAYE tax code. |
| 31 January 2026 | Online tax return submission deadline and the deadline to pay any tax owed for the previous tax year. |
| 31 July 2026 | Deadline for your second payment on account for the 2025/26 tax year. |
Can I Pay My Self-Assessment Through My Tax Code?
Yes, HMRC may adjust your self employed tax code if:
- You already pay tax through PAYE
- Your bill is under £3,000
- You file on time
- You earn enough PAYE income
This option is useful when transitioning or going from self-employed to employed tax code.
How To Submit a Self-Assessment Tax Return?
You must report your self-employed earnings to HMRC through a Self Assessment tax return after the tax year ends. You can submit your self-assessment tax return by following these steps:
Self Assessment Registration
If it is your first time, then register online to get your 10-digit UTR. It will arrive by post and take up to 10 working days.
Set Up a Government Gateway Account
Follow the instructions in the letter with your UTR. It helps to set up your online account and receive an activation code. This can take an additional few days.
Gathering Your Information
Collect all the necessary records. These include:
- Your UTR and National Insurance number
- Self-employment income records and allowable expenses
- P60s, P45s, or P11s for any employed work or benefits
- Statements for other incomes like rental income, interest, and dividends.
- Details of pension contributions or charitable donations for potential tax relief.
Log In And Fill In The Return
Sign in to your HMRC online account. The online system is designed to guide you through only the relevant sections.
Review And Submit
Verify all details entered for their accuracy. You will be sent a confirmation with a reference number upon submission.
Pay Your Tax Bill
Your bill will be calculated automatically if you file online. You’ll need to pay the amount you owe by the 31 January deadline, or you might face penalties. You can pay online or via the HMRC app.
How To Pay Your Self-Assessment Tax Bill?
Payments are generally due by 31 January (for the previous tax year and your first payment on account) and 31 July (your second payment). When paying, you must use your 11-character payment reference, which is your 10-digit UTR followed by the letter ‘K’. Yes, you can pay your bill using four different methods:
Online or Telephone Banking (Faster Payments, Bacs, CHAPS)
This is one of the most common and fastest ways to pay.
- Faster Payments/CHAPS: Same or next day (including weekends/bank holidays for Faster Payments).
- Bacs: Usually takes 3 working days.
- You can find the correct HMRC bank account details online.
Direct Debit
You can set up a single payment Direct Debit or a Budget Payment Plan to make weekly or monthly payments towards your next bill. Make sure you are up to date with past payments. You must set this up through your HMRC online account. Allow 5 working days for the first Direct Debit to be set up.
Debit Card Online
You can pay using a personal or corporate debit card online.
At Your Bank or Building Society
You can pay in person, but you’ll need a paying-in slip from HMRC. This method may take 3 working days to process.
By Cheque Through the Post
This method usually takes 3 working days to process.
You can also use the HMRC app to make payments directly through your bank’s app. You can track if HMRC has received your payment by checking your online account statement a few days after payment.
If you cannot pay your bill by the deadline, you may be able to set up a “Time to Pay” arrangement (payment plan) with HMRC. You can use the HMRC’s online tool to check if you can set up a payment plan.
Bottom Line
Getting your self employed tax code right is not just a technical detail. It directly affects how much tax you pay and whether HMRC collects the correct amount throughout the year. Understanding how your self employed tax code works, when it applies, and how to check it using a tax code checker helps you manage your work conveniently.
Whether you are fully self-employed, juggling multiple incomes, or going from self-employed to employed tax code, staying informed helps you avoid overpaying tax and unnecessary stress.
Reach out to one of our professionals to get to know about a self employed tax code in London. Get in touch with us, and you will be provided instant professional help!
Disclaimer: This article intends to provide general information based on the self employed tax code.
