Withholding and the Self-Employment Receipt
When a self-employed professional (consultant, lawyer, doctor, designer, etc.) issues a receipt for a service, two main taxes apply: VAT computed on the fee (added to the base) and income-tax withholding usually deducted from the fee. This tool applies these two items to the gross amount you enter and shows the approximate net payable.
How It Is Calculated
On the gross (base) you enter: withholding = base × withholding rate (default 20%, deducted from the fee); VAT = base × VAT rate (default 20%, added). Net payable = base − withholding + VAT. You can change the rates by type of work; some services use a different withholding rate or none at all.
Important Notice
This tool does not replace an official self-employment receipt or invoice and is for information only. Withholding rates vary by the type of work and taxpayer; VAT withholding (where the buyer pays part of the VAT directly to the state), exemptions, VAT-free transactions and special cases are not modelled here. For your tax obligations, always consult your accountant and follow current legislation. For VAT operations, use our VAT Calculator. To digitise invoicing, bookkeeping and collections, see our custom software development service.