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UK SELF-EMPLOYED TAX TOOL
Self Employed Tax Calculator UK 2026/27
Estimate Income Tax and Class 4 National Insurance on your self-employed profits. Enter your business income and allowable expenses to see your estimated tax, NI, after-tax profit and a simple payments-on-account planning figure.
2026/27 default
2025/26 comparison
England, Wales, NI & Scotland
HMRC thresholds checked 31 Aug 2026
Quick answer
How much tax will I pay self employed?
For 2026/27, a sole trader normally pays Income Tax on taxable profit after the Personal Allowance, plus Class 4 National Insurance at 6% on profits between £12,570 and £50,270 and 2% above £50,270. Class 2 is not added as a normal charge: if your profits are at least £7,105, it is generally treated as paid for your National Insurance record.
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Sole trader tax and NI calculator
Results update as you type. No contact details are required to see the calculation.
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How self-employed tax is calculated
A sole trader is taxed on business profit rather than simply on money received into the business. In a basic case, taxable trading profit starts with business income and deducts allowable business expenses. Income Tax is then calculated using the Personal Allowance and the rates for your UK tax region. Class 4 National Insurance is calculated separately on self-employed profits.
Deduct allowable expenses
Use actual allowable costs, or the £1,000 trading allowance where it is available and more suitable.
Calculate Income Tax
Apply the Personal Allowance and the appropriate Income Tax bands to the resulting profit.
Add Class 4 NI
For 2026/27, Class 4 is 6% within the main profits band and 2% above the upper profits limit.
2026/27 Income Tax for self-employed profits
The standard Personal Allowance is £12,570. It is reduced by £1 for every £2 of adjusted net income above £100,000 and is normally fully removed at £125,140. The table below shows the main rates for England, Wales and Northern Ireland. Scottish taxpayers use separate Scottish bands.
| Band | 2026/27 rate | Taxable income after allowances |
|---|---|---|
| Personal Allowance | 0% | Standard allowance up to £12,570 |
| Basic rate | 20% | First £37,700 of taxable income |
| Higher rate | 40% | £37,701 to £125,140 |
| Additional rate | 45% | Over £125,140 |
What if I am a Scottish taxpayer?
For 2026/27, Scottish non-savings, non-dividend income uses the starter, basic, intermediate, higher, advanced and top rates. This calculator applies those bands when you select Scotland.
| Scottish band | Rate | Taxable income after allowances |
|---|---|---|
| Starter | 19% | Up to £3,967 |
| Basic | 20% | £3,968 to £16,956 |
| Intermediate | 21% | £16,957 to £31,092 |
| Higher | 42% | £31,093 to £62,430 |
| Advanced | 45% | £62,431 to £125,140 |
| Top | 48% | Over £125,140 |
Class 4 National Insurance calculator for 2026/27
Class 4 National Insurance is based on self-employed profits, not on turnover. For 2026/27, the Lower Profits Limit is £12,570 and the Upper Profits Limit is £50,270.
No Class 4 NI in this band.
Main Class 4 rate.
Class 4 rate on profits above the upper limit.
Class 2 is different.
For 2026/27, if your profits are £7,105 or more, Class 2 is generally treated as paid for your National Insurance record, so this calculator does not add a Class 2 charge to your tax bill. If profits are below that level, voluntary Class 2 may be available at £3.65 a week.
Self-employed tax examples at £30k, £40k, £50k, £75k and £100k profit
These examples use 2026/27 England, Wales or Northern Ireland Income Tax rates, no other taxable income, no other reliefs and no tax already deducted. Figures are rounded to the nearest pound.
| Annual profit | Income Tax | Class 4 NI | Tax + NI | After-tax profit |
|---|---|---|---|---|
| £3,486 | £1,046 | £4,532 | £25,468 | |
| £5,486 | £1,646 | £7,132 | £32,868 | |
| £7,486 | £2,246 | £9,732 | £40,268 | |
| £17,432 | £2,757 | £20,189 | £54,811 | |
| £27,432 | £3,257 | £30,689 | £69,311 |
How allowable expenses change your self-employed tax
Allowable expenses reduce trading profit before Income Tax and Class 4 NI are calculated. That means an allowable £1 of business cost can reduce tax and NI as well as reducing the accounting profit itself. The exact tax saving depends on the band your profit falls into.
Example before expenses
£60,000 profit
Estimated 2026/27 Income Tax + Class 4 NI: £13,889
After £10,000 allowable expenses
£50,000 profit
Estimated 2026/27 Income Tax + Class 4 NI: £9,732
In that simplified example, £10,000 of allowable expenses reduces the estimated Income Tax and Class 4 NI by about £4,157. The expense itself still has to be genuinely incurred for the business and allowable under the tax rules. Read our guide to self-employed allowable expenses or see our bookkeeping service if your records need tidying.
How payments on account can make your January bill look much higher
Payments on account are advance payments towards your next Self Assessment bill. They are normally made in two instalments, due on 31 January and 31 July, and each instalment is usually half of the relevant previous-year Income Tax and Class 4 NI amount.
You may not need payments on account.
They are generally not required where the relevant amount is below £1,000 or where more than 80% of the tax was collected outside Self Assessment. Credits, CIS deductions and changes in expected profit can also affect the real amount due. The calculator therefore shows a planning estimate, not an HMRC statement.
For the 2026/27 tax year, a balancing payment is normally due by 31 January 2028. If payments on account are required, the first payment towards 2027/28 is also normally due on 31 January 2028, with the second on 31 July 2028. See our Self Assessment service if you want the figures checked against your actual return.
Sole trader tax is not the same as limited company tax
This calculator is deliberately built for sole traders and other individuals taxed on self-employed profits. It does not ask for director dividends because a limited company is a separate legal and tax structure. A company may pay Corporation Tax on its profits, while a director or shareholder can have separate tax consequences from salary, dividends, benefits and pension contributions.
Sole trader
- Income Tax on taxable business profit
- Class 4 National Insurance where applicable
- Self Assessment reporting
- Business and personal finances are not separate legal entities
Limited company
- Company can pay Corporation Tax
- Director salary may be subject to PAYE/National Insurance
- Dividends have separate dividend tax rules
- Company and owner are separate legal persons
If you are comparing structures, use our sole trader vs limited company guide, Corporation Tax Calculator and limited company tax planning page instead.
Where to go after using the calculator
Self Assessment
Get your return checked and filed
Small Business Accountants
Ongoing accounting and tax support
Bookkeeping
Keep expenses and records organised
Income Tax Calculator
Estimate tax on broader personal income
CIS subcontractors
Check deductions and Self Assessment
Construction accountants
Accounting support for construction businesses
What to do if your real tax bill differs from this estimate
A calculator is useful for planning, but HMRC works from the full information on your Self Assessment. If your real bill is materially different, check the assumptions before assuming either figure is wrong.
- Check the profit figure. Make sure turnover and allowable expenses match the accounts or tax return.
- Check other income. Employment, property, savings, pensions and other taxable income can use part of your Personal Allowance or move income into a higher band.
- Check tax already deducted. CIS deductions and other credits can reduce what remains payable without changing the underlying liability.
- Check reliefs and adjustments. Loss relief, pension contributions, Gift Aid, capital allowances and other claims are not fully modelled here.
- Check student loan charges. Self Assessment can include student loan or postgraduate loan repayments that this core sole-trader calculator does not add.
- Check payments on account. Your HMRC statement may include a balancing payment plus one or more advance payments.
Still cannot reconcile the figure?
Ask Path to Review It
Send Path your estimate, HMRC statement and the figures used in your return.
How this self employed tax calculator works
What the estimate includes
- 2026/27 and 2025/26 standard Personal Allowance.
- Personal Allowance taper above £100,000.
- England, Wales and Northern Ireland main Income Tax bands.
- Scottish Income Tax bands for the selected year.
- Class 4 National Insurance on self-employed profits.
- Class 2 status messaging without incorrectly adding treated-as-paid Class 2 as a charge.
- Actual allowable expenses or the £1,000 trading allowance as alternative methods.
- A simple credit field for tax already deducted or paid.
- A planning illustration for possible payments on account.
What is not fully modelled
- Other taxable income and multiple trades.
- Loss relief and brought-forward losses.
- Capital allowances and basis-period adjustments.
- Student and postgraduate loan repayments.
- Pension and Gift Aid extension of tax bands.
- Blind Person's Allowance, Marriage Allowance and specialist reliefs.
- Class 4 exemptions, deferments or State Pension age issues.
- The detailed 80% deducted-at-source test for payments on account.
- Limited-company salary, dividends or Corporation Tax.
This calculator is a planning tool, not tax advice and not a substitute for HMRC's Self Assessment calculation. Statutory figures were last checked on 31 August 2026.
ACA
Professionally reviewed
Mohammad Hamza Pathan
ICAEW Chartered Accountant, practising certificate holder and director of Path Accountants. Technical review covers UK tax compliance, Self Assessment, bookkeeping and small-business accounting.
HMRC and GOV.UK sources used
Income Tax rates and Personal Allowances
GOV.UK
Income Tax rates and allowances — current and previous years
HM Revenue & Customs
National Insurance rates and allowances
HM Revenue & Customs
Self Assessment payments on account
GOV.UK
Expenses if you're self-employed
GOV.UK
£1,000 trading allowance
HM Revenue & Customs
Self employed tax calculator FAQs
Is this self employed tax calculator updated for 2026/27?
Yes. The default calculation uses the 2026/27 Personal Allowance, Income Tax bands and Class 4 National Insurance thresholds. You can switch to 2025/26 for comparison.
How much tax will I pay self employed on £50,000 profit?
In a simplified 2026/27 England, Wales or Northern Ireland example with no other taxable income or reliefs, £50,000 of self-employed profit produces about £7,486 of Income Tax and £2,246 of Class 4 National Insurance, leaving about £40,268 after those two charges. Payments on account can change the amount of cash due to HMRC at a particular deadline.
Do self-employed people still pay Class 2 National Insurance?
Class 2 is no longer automatically charged in the same way it used to be. For 2026/27, if profits are at least £7,105, Class 2 is generally treated as paid for National Insurance record purposes. People below that level may be able to pay voluntary Class 2 at £3.65 a week.
Does this calculator include the £1,000 trading allowance?
Yes. Choose the trading allowance option instead of actual expenses. The trading allowance is not available in every situation and cannot normally be combined with actual expenses against the same trading income.
Does this calculator work for CIS subcontractors?
It can estimate Income Tax and Class 4 NI on self-employed profit. You can also enter tax already deducted as a planning credit, but a full CIS reconciliation should use the actual deduction statements and Self Assessment figures. See our accountants for subcontractors and CIS deductions guide.
Why is my January Self Assessment payment higher than the calculator's tax figure?
HMRC may be collecting both a balancing payment for the year just ended and the first payment on account for the next tax year. Other charges, student loans or underpayments can also appear on the Self Assessment statement.
Can I use this as a limited company director salary and dividend calculator?
No. This page intentionally calculates sole-trader/self-employed profit. Limited companies have separate Corporation Tax, director salary and dividend considerations. Use a company-specific calculator or tax-planning review.
Why might HMRC calculate a different amount?
HMRC uses your complete tax return. Other income, loss relief, pension or Gift Aid adjustments, student loans, capital allowances, CIS credits, Scottish status and previous payments on account can all make the real result differ.
Want the estimate checked against your real figures?
Not sure whether your expenses or payments on account are being handled correctly? Ask Path to review your estimate.
Ask Path to Review Your Estimate