UK Self-Employed Tax Calculator 2026/27

Calculate your income tax, Class 2 and Class 4 National Insurance as a sole trader. See your true take-home pay after expenses and all deductions.

Gross Income
£0.00
Business Expenses
£0.00
Net Profit (Taxable)
£0.00
Income Tax
£0.00
Class 2 NI
£0.00
£3.45/week
Class 4 NI
£0.00
6% / 2%
Total NI
£0.00
Student Loan
£0.00
Total Deductions
£0.00
Take-Home Income
£0.00
Monthly Take-Home
£0.00
Effective Tax Rate
0%
Enter your income and expenses to calculate your self-employed tax.
Income Breakdown
How Self-Employed Tax Works

As a sole trader, you pay income tax and two types of National Insurance. Class 2 NI is a flat rate of £3.45/week (£179.40/year) if your profits exceed £12,570. Class 4 NI is charged at 6% on profits between £12,570 and £50,270, and 2% above £50,270.

Self Assessment: You must register for Self Assessment and file a tax return each year by 31 January (online). Your tax bill for the year is also due on 31 January, along with a 50% payment on account towards next year's bill. A second payment on account is due 31 July.

Allowable expenses reduce your taxable profit. Common allowable expenses include office costs, travel (not commuting), equipment, professional subscriptions and marketing costs. You cannot claim personal expenses.

Pension contributions: Sole traders can contribute to a personal pension and receive tax relief at their marginal rate. Contributions reduce taxable income but not the profit for NI purposes in all cases · this calculator deducts pension contributions from taxable profit before calculating income tax.

Self-Employed Tax · Take-Home Pay 2026/27

England · No pension · Tax on profit after expenses. Class 4 NI at 6% (up to £50,270) and 2% above. Always set aside 25–30% for tax.

Gross Income Allowable Expenses Taxable Profit Income Tax Class 4 NI Total Tax Net Profit (Annual) Net Profit (Monthly)
£20,000£2,000£18,000£1,086£434£1,520£18,480£1,540
£30,000£3,000£27,000£2,886£874£3,760£26,240£2,187
£40,000£5,000£35,000£4,486£1,347£5,833£34,167£2,847
£50,000£5,000£45,000£6,486£1,947£8,433£41,567£3,464
£60,000£8,000£52,000£9,232£2,086£11,318£48,682£4,057
£80,000£10,000£70,000£17,232£2,486£19,718£60,282£5,024
£100,000£10,000£90,000£25,232£2,886£28,118£71,882£5,990

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Self-Employed Tax Calculator FAQs

How much tax do I pay if self-employed earning £40,000?
On £40,000 gross with £5,000 expenses, you pay tax on £35,000 profit: income tax £4,486 · Class 4 NI £1,347 · total tax £5,833. Net profit after tax is £34,167 (£2,847/month). Always set aside 25–30% of income to cover your Self Assessment bill.
What is Class 4 National Insurance for self-employed in 2026/27?
Class 4 NI is charged at 6% on profits between £12,570 and £50,270, and 2% on profits above £50,270. Class 2 NI was abolished from April 2024 · most self-employed people no longer pay it. Class 4 NI is calculated and paid through your Self Assessment tax return.
Do I need to register for Self Assessment if self-employed?
Yes. You must register with HMRC for Self Assessment if your self-employment income exceeds £1,000 in a tax year. Register by 5 October following the end of the tax year in which you started self-employment. Filing deadlines are 31 October (paper) and 31 January (online).
What expenses can I claim as self-employed?
Allowable expenses include: business mileage, office costs, professional subscriptions, software, marketing, accounting fees, business insurance, use of home as office, and stock or materials. Personal costs and client entertaining are not deductible. Expenses reduce your taxable profit, lowering both income tax and Class 4 NI.
What is a payment on account?
If your Self Assessment tax bill exceeds £1,000, HMRC requires advance payments towards next year's bill. The first payment (50% of the current year's bill) is due 31 January alongside your annual tax. The second (another 50%) is due 31 July. If your income drops, you can apply to reduce payments on account via your HMRC online account.

For informational purposes only · Not financial advice · Tax rates shown are for 2026/27