Self-Employed Tax Calculator UK 2026/27

If you are a sole trader, you pay income tax and Class 4 National Insurance on your profit. Profit is your business income minus allowable expenses. You pay through Self Assessment, not through a monthly payslip, so nobody takes the tax out for you.

For 2026/27, most people can earn £12,570 of income tax-free. On profit above that you pay 20% income tax up to £50,270, 40% up to £125,140 and 45% above that. On top of that, Class 4 National Insurance is 6% on profit between £12,570 and £50,270 and 2% above.

The personal allowance reduces by £1 for every £2 of income over £100,000 and is gone completely at £125,140.

The calculator above applies the England, Wales and Northern Ireland rates. If you are a Scottish taxpayer, use the Scottish examples below, or send us your figures and we will work it out for you.

Income tax and National Insurance rates checked against GOV.UK on 4 September 2026. Scottish rates checked against the Scottish Government on 20 September 2026. Both are linked in the sources at the foot of this page.

These examples use profit only. They assume no other income, student loan, pension contributions or voluntary Class 2. Figures are rounded to the nearest pound.

At £50,000 of profit, a Scottish sole trader pays about £1,496 more than someone in the rest of the UK.

1. 1Add up your income. This is your turnover for the tax year, 6 April to 5 April.
2. 2Subtract allowable expenses. What is left is your taxable profit. You can claim the £1,000 trading allowance instead of actual expenses if it is more helpful, but not both.
3. 3Apply your personal allowance. The first £12,570 of income is tax-free.
4. 4Work out income tax. Charge the rates in the table above to the rest of your profit.
5. 5Add Class 4 National Insurance. This is 6% on profit between £12,570 and £50,270 and 2% above.

Example: on £35,000 profit in England, £22,430 is taxable after the personal allowance. Income tax at 20% is £4,486. Class 4 NI at 6% on the same £22,430 is £1,346. Total: £5,832, leaving £29,168.

For most people, no. Since April 2024, if your profit is £7,105 or more in 2026/27, HMRC treats your Class 2 contributions as paid. The year still counts towards your State Pension and you pay nothing.

If your profit is below £7,105 you do not have to pay Class 2, but you can pay voluntarily at £3.65 a week (£189.80 for the year) to keep the year counting. That is usually worth considering if you are building your State Pension or need a full record for benefits such as Maternity Allowance.

Class 4 is separate. It is charged on your profit as a percentage and does not build State Pension entitlement.

If you have a job and run a business on the side, HMRC adds your incomes together. Your salary usually uses up your personal allowance first, so your self-employed profit is taxed on top of it. That can push part of your profit into the higher rate sooner than you would expect.

Enter your salary in "Other income" and your profit in the profit field. The calculator works out income tax on the combined total and Class 4 National Insurance on your profit only. Your employer deals with employee National Insurance on your salary separately.

Scottish taxpayers pay income tax on their self-employed profit at Scottish rates, which have six bands instead of three. The Scottish higher rate starts at £43,663, well below the rest of the UK. National Insurance is the same across the UK.

The calculator on this page uses the England, Wales and Northern Ireland rates, so a Scottish taxpayer should read the Scottish table and examples above rather than the figure it returns. Send us your numbers and we will give you the Scottish position.

You pay your Self Assessment bill after the tax year ends, not as you go. The bill for 2026/27 is due by 31 January 2028.

Once your bill is over £1,000, and less than 80% of it was collected at source, HMRC asks for payments on account. These are advance payments towards next year’s bill, each 50% of your previous bill, due on 31 January and 31 July.

Example: if your first-year bill is £4,000, then on 31 January you pay the £4,000 balance plus a £2,000 first payment on account. That is £6,000 in one go. Another £2,000 follows on 31 July.

The calculator does not include payments on account. Take the Total Liability it gives you, divide it by twelve, and move that much into a separate savings account each month — then the money is there when the deadline comes.

Key dates

Making Tax Digital for Income Tax started on 6 April 2026. It applies to sole traders and landlords whose gross income from self-employment and property is over £50,000. The threshold falls to £30,000 from April 2027 and £20,000 from April 2028.

The test uses your income before expenses, not your profit, and HMRC bases it on your Self Assessment return for an earlier year. If it applies to you, you will need to keep digital records, use compatible software, send quarterly updates and file a final declaration by 31 January.

If your turnover is close to a threshold, talk to us before you are required to switch. Getting your records and software set up early avoids a scramble.

An expense is allowable if it is wholly and exclusively for your business. Common examples:

• checkOffice costs, stationery and software subscriptions
• checkBusiness insurance and professional fees
• checkBusiness travel (not commuting), using actual costs or HMRC’s flat-rate mileage
• checkEquipment, tools and materials
• checkMarketing and advertising
• checkA fair share of home costs if you work from home

Personal costs, client entertainment and your ordinary commute are not allowable. Keep receipts and records for every claim.

If your expenses are small, the £1,000 trading allowance may give you a better result. You can claim either the allowance or your actual expenses, not both. The calculator works from the profit figure you enter, so take the allowance off yourself if it is the better of the two.

Whether a limited company would save you tax depends on your profit, how much you take out of the business, and your circumstances. A company can reduce tax as profits rise, but it also adds accounts, filings and admin.

The comparison above is a rough guide. For a closer look, try our limited company or sole trader calculator — and if you would like a straight answer for your situation, ask us for a fixed-fee quote.

How much tax will I pay as a sole trader?

It depends on your profit, not your turnover. For 2026/27 you pay income tax at 20% on profit above £12,570 (up to £50,270), 40% above that, and Class 4 National Insurance at 6% and 2%. Use the calculator above for your own figures, or see the examples table for common profit levels.

How much tax do I pay on £20,000 self-employed?

In England, Wales and Northern Ireland, about £1,932 for 2026/27: £1,486 income tax and £446 Class 4 National Insurance. That leaves roughly £18,068. In Scotland it is about £1,892.

How much should I put aside for tax?

Take the Total Liability the calculator gives you and divide it by twelve. On the profits in the examples table the share paid ranges from about 10% to 31%, so a flat percentage rule of thumb can be well out. Add a small buffer in case your profit turns out higher than you expected.

Do I still pay Class 2 National Insurance?

For most people, no. If your profit is £7,105 or more in 2026/27, Class 2 is treated as paid and the year counts towards your State Pension. Below £7,105 you can pay voluntarily at £3.65 a week.

What are payments on account?

They are advance payments towards next year’s tax bill, each 50% of your previous bill, due on 31 January and 31 July. They apply once your bill is over £1,000 and less than 80% of it was collected at source. This calculator does not include them.

What expenses can I claim as a sole trader?

Costs that are wholly and exclusively for your business, such as software, insurance, business travel and equipment. You can claim the £1,000 trading allowance instead of actual expenses, but not both.

I am employed and self-employed. Does this calculator work for me?

Yes. Enter your salary in "Other income" and your profit in the profit field. Your incomes are added together for income tax, so your profit is taxed on top of your salary. Class 4 National Insurance is charged on your profit only.

Is tax different in Scotland?

Yes. Scottish income tax has six bands from 19% to 48%, and the higher rate starts at £43,663. National Insurance is the same across the UK. The calculator on this page uses the England, Wales and Northern Ireland rates, so Scottish taxpayers should use the Scottish table and examples above.

When is my tax bill due?

The bill for 2026/27 is due by 31 January 2028, along with the first payment on account for the following year if it applies. A second payment on account is due on 31 July.

Does Making Tax Digital apply to me?

It applies from April 2026 if your gross self-employment and property income is over £50,000, from April 2027 over £30,000, and from April 2028 over £20,000. The test is based on income before expenses, not profit.

What if my profit is below the personal allowance?

If your profit is £12,570 or less you pay no income tax and no Class 4 National Insurance. If it is between £7,105 and £12,570, Class 2 is treated as paid. Below £7,105 you can choose to pay voluntary Class 2 to protect your State Pension record.

Does this include student loan repayments?

No. This calculator covers income tax and Class 4 National Insurance only. If you have a student loan, your repayment is worked out on your total income and will be collected through Self Assessment on top of the figure shown here.

Is this the same as the HMRC calculator?

No. It is an estimate built on 2026/27 rates and the details you enter. HMRC’s own tools and your final Self Assessment return are what count, and an accountant can review your full position.

How this calculator works. It estimates income tax and Class 4 National Insurance on the profit you enter, using the 2026/27 rates set out on this page for England, Wales and Northern Ireland. It applies the personal allowance and its reduction above £100,000, and it adds any other income you enter when working out which income tax bands you fall into.

What it does not include: Scottish rates, student loan repayments, pension contributions, the trading allowance, payments on account, the High Income Child Benefit Charge, dividends, savings or property income, Marriage Allowance, Gift Aid and other reliefs. It is an estimate, not a tax calculation.

• open_in_newGOV.UK — Income Tax rates and Personal Allowances
• open_in_newGOV.UK — Self-employed National Insurance rates
• open_in_newScottish Government — Scottish Income Tax rates and bands 2026 to 2027
• open_in_newGOV.UK — Making Tax Digital for Income Tax