Tax, Self-Employment, Visa and Benefits Guide

About this guide

This guide explains the main tax, self-employment, visa and benefit rules that may apply when working independently as a care professional through Steadlo.

Steadlo Ltd is not a law firm, accountancy practice, tax adviser or immigration adviser. This guide provides general information only.

Steadlo carries out a right-to-work check among other checks before a care professional can accept bookings through the platform. Where a person's immigration status includes work restrictions, Steadlo reviews the restrictions shown through the right-to-work process.

Sponsored workers must also confirm that they meet the rules for additional work before accepting bookings.

Steadlo cannot see all work completed outside the platform, including hours worked for a sponsor, another employer, another platform, private clients or time spent administering a self-employed business. You remain responsible for staying within any limits attached to your immigration permission.

Where your right to work is time-limited, Steadlo will carry out any required follow-up check and you must inform us if you no longer meet the work eligibility requirements.

Home Office right-to-work guidance (opens in a new tab)

You are responsible for:

• providing accurate information about your right to work;
• following the conditions of your visa or immigration status;
• telling Steadlo if relevant restrictions change;
• registering with HMRC where required;
• keeping accurate records;
• declaring taxable income; and
• paying any Income Tax and National Insurance due.

1. Can I work as a self-employed care professional?

Three things determine whether you can work independently:

1. Do you have the right to work in the UK?
2. Does your immigration status allow self-employment and the work you want to do?
3. Is the arrangement genuinely self-employed for tax and employment purposes?

These are separate questions.

For example, some Student visa holders are allowed to work limited hours as employees but are generally not allowed to be self-employed.

Student immigration rules (opens in a new tab)

Employment status also depends on how you actually work, not simply what a contract calls you.

HMRC Check Employment Status for Tax tool (opens in a new tab)

2. Who can usually work self-employed?

British and Irish citizens

British citizens can work and be self-employed in the UK without immigration permission.

Irish citizens can generally live and work in the UK under the Common Travel Area arrangements.

Steadlo still carries out the appropriate right-to-work check.

Check someone's right to work (opens in a new tab)

Indefinite Leave to Remain and settled status

People with Indefinite Leave to Remain can normally work and be self-employed without restrictions on the type or hours of work.

People with qualifying status under the EU Settlement Scheme can also work, subject to their status remaining valid.

Indefinite Leave to Remain rights (opens in a new tab)
EU Settlement Scheme (opens in a new tab)

Graduate visa

Yes. Graduate visa holders can be self-employed.

GOV.UK states that Graduate visa holders can work in most jobs and be self-employed. There is no general 20-hour limit on Graduate visa work. Professional sport is restricted.

A Graduate visa holder can therefore generally work full-time as a self-employed care professional, provided the arrangement itself is genuinely self-employed and any other applicable requirements are met.

Graduate visa (opens in a new tab)

Dependants on many work routes

Dependants on qualifying work routes normally have broad permission to work, including self-employment and voluntary work, subject to the conditions attached to their immigration permission.

Home Office guidance for dependants on work routes (opens in a new tab)

Spouse and partner family visas

People with qualifying spouse or partner permission under the family visa route can normally work, including through self-employment.

A person in the UK as a fiancé, fiancée or proposed civil partner cannot work while holding that permission. After marriage or civil partnership, they must obtain further immigration permission that allows work.

Family visa: partner or spouse (opens in a new tab)

Student visa

Generally no.

Student visa holders may have permission to work a limited number of hours as employees, but they are generally not permitted to be self-employed or engage in business activity.

This means that having permission to work 20 hours does not usually mean those 20 hours can be used for self-employed care work.

Student immigration rules (opens in a new tab)

3. Health and Care Worker and Skilled Worker visas

Sponsored workers may be able to undertake additional paid work or run their own business for up to 20 hours per week, provided they continue working in their sponsored job and meet the supplementary employment rules.

Health and Care Worker additional work rules (opens in a new tab)
Skilled Worker additional work rules (opens in a new tab)

What type of additional work is allowed?

For a Health and Care Worker, additional work of up to 20 hours per week must generally be:

• in an eligible occupation classed as higher skilled;
• on the Immigration Salary List; or
• in the same sector and at the same level as the sponsored job.

Additional rules apply to medium-skilled occupations.

Care workers and senior care workers

The following occupations are currently classed as medium skilled:

• 6135: Care workers and home carers
• 6136: Senior care workers

Skilled Worker eligible occupations (opens in a new tab)

A Health and Care Worker can undertake additional work in a medium-skilled occupation where:

1. The Certificate of Sponsorship for their first Tier 2 or Health and Care Worker visa was issued before 22 July 2025; and
2. They have continuously held one or more Health and Care Worker visas since then.

Example

If your first Health and Care Worker Certificate of Sponsorship was issued in January 2024 and you have continuously remained on that route, you may be able to undertake qualifying additional care work for up to 20 hours per week.

If your first qualifying sponsorship began in September 2025, the medium-skilled supplementary employment provision would not normally allow additional care work under occupation codes 6135 or 6136.

Health and Care Worker additional work rules (opens in a new tab)

Skilled Worker visas

The wider Skilled Worker route has a similar transitional rule.

Additional work in a medium-skilled occupation is generally permitted where:

• the Certificate of Sponsorship for the first Tier 2 or Skilled Worker visa was issued before 22 July 2025; and
• the person has continuously held one or more Skilled Worker visas since then.

Skilled Worker additional work rules (opens in a new tab)

What counts towards the 20 hours?

If you are carrying out self-employed additional work, time spent running the business can count towards the 20-hour limit.

GOV.UK gives preparing invoices as an example.

This means the 20 hours can include both direct care work and related business administration.

What Steadlo checks

Steadlo reviews the immigration status and restrictions available through the right-to-work process.

Sponsored workers must confirm that they meet the applicable supplementary employment rules before accepting bookings.

Steadlo cannot see:

• the hours you work for your sponsor;
• additional work completed elsewhere;
• private self-employed work outside Steadlo; or
• time spent administering your business.

You therefore remain responsible for keeping your total additional work within any limit that applies to you.

If your immigration status, sponsor or work restrictions change, you should tell Steadlo where that change affects your ability to accept bookings.

4. Other immigration categories

Standard Visitor

A Standard Visitor cannot normally work for a UK business, run a business as a self-employed person or provide services in the UK outside the limited activities allowed under the Visitor Rules.

Standard Visitor immigration rules (opens in a new tab)

Asylum seekers

An asylum seeker who has been given permission to work is generally not permitted to become self-employed.

Check the conditions attached to your permission before undertaking work.

Home Office guidance on working while an asylum claim is considered (opens in a new tab)

If your status is not listed here

Check:

• your eVisa;
• your Home Office decision;
• the GOV.UK rules for your immigration route; and
• any conditions attached to your permission.

If you are unsure whether your status allows self-employment, seek advice from a regulated immigration adviser.

5. What does self-employed mean?

A self-employed person normally runs a business on their own account.

Depending on the arrangement, this may include:

• setting or negotiating your own rate;
• working for different clients;
• choosing whether to accept work;
• invoicing for services;
• paying your own business expenses; and
• working independently rather than as an employee.

No single factor decides whether someone is self-employed.

You can also be employed and self-employed at the same time. For example, you may have a PAYE care job while also providing genuine self-employed care services separately.

Employment status guidance (opens in a new tab)

6. Do I need to register with HMRC?

This guide assumes you work as a sole trader.

You normally need to register for Self Assessment if your gross trading income is more than £1,000 during a tax year.

Gross income means income before expenses.

The UK tax year runs from 6 April to 5 April.

Register as a sole trader (opens in a new tab)

7. What if I earn £1,000 or less?

The £1,000 trading allowance may mean you do not need to tell HMRC about trading income of £1,000 or less, although exceptions apply.

If your income is more than £1,000, you may be able to use the trading allowance instead of claiming your actual business expenses.

You cannot claim both against the same income.

HMRC trading allowance guidance (opens in a new tab)

8. How is self-employed tax calculated?

For most sole traders, tax is based on profit, not the total amount clients pay you.

Turnover is the money your business receives.

Profit is broadly:

business income − allowable business expenses = business profit

Your overall tax position then depends on your other income and personal circumstances.

9. Income Tax for 2026/27

For the tax year 6 April 2026 to 5 April 2027, the standard Personal Allowance is £12,570.

For England, Wales and Northern Ireland:

• up to £12,570: normally covered by the Personal Allowance;
• £12,571 to £50,270: 20%;
• £50,271 to £125,140: 40%;
• above £125,140: 45%.

The Personal Allowance starts reducing where adjusted net income exceeds £100,000.

Scotland has different rates and bands.

Current Income Tax rates (opens in a new tab)

10. What if I already have a PAYE job?

You do not receive a separate Personal Allowance for every job or business.

Income from employment, self-employment and other taxable sources is considered together.

If your PAYE job already uses your Personal Allowance, some or all of your self-employed profit may be taxable.

You may also pay Class 1 National Insurance through employment and Class 4 National Insurance on qualifying self-employed profits.

National Insurance rates (opens in a new tab)

11. National Insurance for 2026/27

If your self-employed profits are below £7,105, you normally do not have to pay self-employed National Insurance, although voluntary Class 2 contributions may be available.

If profits are £7,105 or more, Class 2 contributions are treated as paid for National Insurance record purposes.

If profits exceed £12,570, Class 4 National Insurance applies at:

• 6% on profits between £12,570 and £50,270;
• 2% on profits above £50,270.

The voluntary Class 2 rate for 2026/27 is £3.65 per week.

Self-employed National Insurance rates (opens in a new tab)

12. What business expenses can I claim?

You can generally deduct qualifying business expenses when calculating taxable profit.

Relevant expenses may include:

• qualifying business travel;
• the business proportion of phone and internet costs;
• professional indemnity and qualifying business insurance;
• relevant training;
• certain professional fees;
• equipment used for the business; and
• other qualifying business costs.

Personal expenses cannot normally be claimed.

HMRC allowable expenses guidance (opens in a new tab)

13. Travel and mileage

For 2026/27, the simplified mileage rates for cars and goods vehicles are:

• 55p per business mile for the first 10,000 miles;
• 25p per business mile after 10,000 miles.

Not every journey between home and a client's home automatically qualifies as business travel.

Keep an accurate mileage record and check HMRC guidance if you are unsure.

HMRC simplified vehicle expenses (opens in a new tab)

14. What records should I keep?

Keep records of your business income and expenses, including where relevant:

• invoices;
• receipts;
• bank statements;
• mileage records;
• platform payment records; and
• evidence supporting expenses.

Keeping good records makes Self Assessment significantly easier.

HMRC record-keeping guidance (opens in a new tab)

15. Does income earned through Steadlo count for tax?

Yes.

Income earned through Steadlo or another digital platform is still trading income and may need to be declared to HMRC.

Digital platforms can also have reporting obligations requiring information about people earning through their platforms to be provided to HMRC.

HMRC guidance on income from online platforms (opens in a new tab)

16. Self Assessment deadlines

For most people using online Self Assessment:

• register where required by 5 October following the relevant tax year;
• submit the online return by 31 January;
• pay the tax due by 31 January.

For example, income earned between 6 April 2026 and 5 April 2027 would normally be included in the 2026/27 tax return, due online by 31 January 2028.

Self Assessment deadlines (opens in a new tab)

17. Payments on account

Some self-employed people also have to make payments on account towards the following year's tax bill.

Each payment is normally half of the previous year's qualifying Self Assessment liability and is usually due on:

• 31 January; and
• 31 July.

Payments on account normally do not apply where the relevant previous-year liability was below £1,000 or more than 80% of the tax was collected outside Self Assessment.

Using the example in Section 24:

Income Tax and Class 4 National Insurance: £3,231.80
First payment on account: £1,615.90

The first January payment could therefore be approximately:

£4,847.70

A second payment on account of approximately £1,615.90 could then be due on 31 July.

HMRC payments on account guidance (opens in a new tab)

18. How much should I put aside for tax?

There is no single percentage that works for everyone.

Your tax depends on your profit, other income, expenses, tax band and National Insurance position.

As a practical starting point, a basic-rate taxpayer may choose to set aside around 25% to 30% of profit.

This is a budgeting guide, not an HMRC tax rate.

If you already have substantial PAYE income or expect to pay higher-rate tax, you may need to set aside more.

19. Making Tax Digital for Income Tax

Making Tax Digital for Income Tax is being introduced in stages.

It applies based on qualifying gross self-employment and property income:

• over £50,000: from 6 April 2026;
• over £30,000: from 6 April 2027;
• over £20,000: from 6 April 2028.

People within the scheme must use compatible software to keep digital records and provide the required information to HMRC.

Check whether Making Tax Digital applies to you (opens in a new tab)

20. VAT

VAT treatment in care depends on the type of service, provider and regulatory position.

Some qualifying welfare services are exempt from VAT. Others may be taxable.

Do not assume that every care service is automatically VAT exempt.

If your turnover approaches the VAT registration threshold, speak to HMRC or an accountant about your specific circumstances.

HMRC VAT guidance for welfare services (opens in a new tab)

21. Universal Credit and self-employment

If you are eligible for Universal Credit and become self-employed, you must report your business income and expenses in line with Universal Credit rules.

If DWP considers you gainfully self-employed, the Minimum Income Floor may eventually affect your award.

Some people may qualify for a start-up period during which actual earnings are used instead.

Immigration status also matters. Universal Credit is classed as a public fund, so people with a ‘no recourse to public funds’ condition will normally be unable to claim it.

Universal Credit and self-employment (opens in a new tab)

22. Maternity Allowance

Self-employed people may qualify for Maternity Allowance.

For 2026/27, eligible self-employed claimants may receive between £27 and £194.32 per week for up to 39 weeks, depending on their circumstances and National Insurance record.

Maternity Allowance (opens in a new tab)

23. Holiday pay and sick pay

People who are genuinely self-employed do not normally receive employee benefits such as statutory holiday pay or Statutory Sick Pay from their clients.

It is worth considering this when setting your rate and managing your finances.

Employment status and self-employment (opens in a new tab)

24. Example tax calculation

Assume:

Care income: £30,000
Allowable expenses: £5,000
Profit: £25,000

For someone in England, Wales or Northern Ireland with no other taxable income and the full 2026/27 Personal Allowance:

Profit: £25,000
Personal Allowance: £12,570
Taxable amount: £12,430

Income Tax:
£12,430 × 20% = £2,486

Class 4 National Insurance:
£12,430 × 6% = £745.80

Approximate Income Tax and Class 4 National Insurance:
£3,231.80

If payments on account apply:

First payment on account: £1,615.90
Approximate amount due on the first 31 January:
£4,847.70

A second payment on account of approximately £1,615.90 may then be due on 31 July.

This example is simplified and does not include other income, reliefs, tax already deducted, student loan repayments, pension contributions or other individual circumstances.

Current Income Tax rates (opens in a new tab)
Self-employed National Insurance rates (opens in a new tab)

25. Frequently asked questions

I am on a Graduate visa. Can I work self-employed as a care professional?

Yes, generally. Graduate visa holders can be self-employed.

Graduate visa (opens in a new tab)

I am on a Student visa and can work 20 hours. Can I use those hours for self-employed care work?

Generally, no. Student visa holders are normally not permitted to be self-employed.

Student immigration rules (opens in a new tab)

I am sponsored as a care worker. Can I do additional self-employed care work?

Yes, in certain conditions.

For care work under the medium-skilled occupation rules, your first relevant sponsorship must generally have begun before 22 July 2025, and you must have continuously held qualifying sponsored permission since then.

If you qualify, you may be able to undertake up to 20 hours of additional work each week, including relevant business administration.

Health and Care Worker additional work rules (opens in a new tab)

Does Steadlo check my right to work?

Yes.

Steadlo carries out the relevant right-to-work check before you can accept bookings.

Where restrictions appear on your status, Steadlo reviews those restrictions.

If you are sponsored, you must also confirm that you meet the supplementary employment rules.

You remain responsible for keeping within any limit that applies to work you undertake outside Steadlo.

I am on a spouse or partner family visa. Can I work self-employed?

Generally, yes.

People with qualifying spouse or partner permission can normally work, including self-employment.

People in the UK as a fiancé, fiancée or proposed civil partner cannot work until they obtain further permission after marriage or civil partnership.

Family visa: partner or spouse (opens in a new tab)

Does Steadlo pay my tax?

No.

If you are self-employed, you are responsible for registering with HMRC where required, declaring your income and paying any tax and National Insurance due.

I already have a PAYE job. Do I still declare my self-employed income?

Yes, where the Self Assessment rules require it.

You can be employed and self-employed at the same time.

Do I need to register if I earn less than £1,000?

Not necessarily.

The trading allowance may apply, depending on your circumstances.

HMRC trading allowance guidance (opens in a new tab)

Does income earned through Steadlo count for tax?

Yes.

Income earned through Steadlo is still trading income and may need to be declared to HMRC.

26. Before accepting bookings

Check that:

1. Steadlo has completed your right-to-work verification.
2. Your immigration status allows you to undertake the work.
3. If you are sponsored, you meet the supplementary employment rules.
4. You remain within any applicable working-hours limit.
5. Your arrangement is genuinely self-employed.
6. You register with HMRC where required.
7. You keep records of your income and expenses.
8. You set money aside for tax and National Insurance.
9. You check how self-employment may affect any benefits you receive.
10. You tell Steadlo if your immigration status or work restrictions change.