Precision Utility
Self-Employed Tax
Calculator 2026/27
Class 2 NI
Abolished
Tax Year
2026/27
Calculate your total self-employed tax bill for 2026/27. Enter your turnover and expenses to see Income Tax, Class 2 NI, Class 4 NI and student loan repayments on your trading profit. Pension contributions are deducted before tax is calculated. Results use current HMRC rates.
Your Self-Employment
Total Tax Payable
£0
Net Profit
£0
Monthly
£0
Trading Profit
£0
Effective Rate
0%
Income Tax
£0
Class 2 NI
£0
Class 4 NI
£0
Student Loan
£0
How the self-employed tax calculator works
Enter your annual turnover and allowable business expenses. The calculator subtracts your expenses from turnover to find your trading profit — this is the figure HMRC taxes you on.
If you make pension contributions, the calculator deducts them from your profit before calculating Income Tax. This reduces your tax bill because pension contributions attract tax relief at your marginal rate.
Income Tax is calculated using the same progressive bands as employed workers — Personal Allowance, basic rate (20%), higher rate (40%) and additional rate (45%). Your tax code determines your Personal Allowance, with 1257L giving the standard £12,570.
The calculator then applies Class 4 NI (6% on profits between £12,570 and £50,270, plus 2% above £50,270). Class 2 NI was abolished from April 2024 and is no longer charged. Student loan repayments are calculated on profit above the relevant plan threshold.
What you need to know about self-employed tax 2026/27
If you work for yourself as a sole trader or freelancer, you pay tax through HMRC's Self Assessment system. Your tax bill is based on your trading profit — turnover minus allowable business expenses. Here are the key rates:
- Income Tax: Same bands as employees — 0% up to £12,570, 20% to £50,270, 40% to £125,140, 45% above
- Class 2 NI: Abolished from April 2024 — no longer charged
- Class 4 NI: 6% on £12,570–£50,270, then 2% above £50,270
Payment on Account: If your tax bill exceeds £1,000, HMRC requires advance payments. You pay two instalments (each 50% of last year's bill) on 31 January and 31 July, plus a balancing payment. In your first year you may pay up to 150% of your normal bill.
Filing deadlines: For 2026/27, file online by 31 January 2027 or on paper by 31 October 2026. All tax owed must be paid by 31 January 2027.
For employee NI calculations, use our National Insurance calculator. For the latest rates, see the official HMRC self-employed NI rates page on GOV.UK.
Self-employed tax calculation examples 2026/27
These worked examples show the full tax breakdown for three common self-employed income levels. All figures use 2026/27 HMRC rates with no pension contributions or student loans.
Example 1: £25,000 profit (part-time freelancer)
Income Tax: (£25,000 − £12,570) × 20% = £2,486
Class 2 NI: £0 (abolished April 2024)
Class 4 NI: (£25,000 − £12,570) × 6% = £745.80
Total tax bill: £3,232 | Take-home: £21,768 | Effective rate: 12.9%
Example 2: £45,000 profit (full-time sole trader)
Income Tax: (£45,000 − £12,570) × 20% = £6,486
Class 2 NI: £0 (abolished April 2024)
Class 4 NI: (£45,000 − £12,570) × 6% = £1,945.80
Total tax bill: £8,432 | Take-home: £36,568 | Effective rate: 18.7%
Example 3: £80,000 profit (established consultant)
Income Tax: Basic (£37,700 × 20%) + Higher ((£80,000 − £50,270) × 40%) = £7,540 + £11,892 = £19,432
Class 2 NI: £0 (abolished April 2024)
Class 4 NI: (£37,700 × 6%) + ((£80,000 − £50,270) × 2%) = £2,262 + £594.60 = £2,856.60
Total tax bill: £22,289 | Take-home: £57,711 | Effective rate: 27.9%
At this level, contributing £10,000 to a pension would save £4,000 in income tax alone. Use our pension tax relief calculator to see your savings.
Should you stay self-employed or go limited?
Once your profits exceed roughly £35,000–£40,000, operating as a limited company can reduce your overall tax bill. As a sole trader you pay income tax + Class 4 NI on all profit (Class 2 was abolished from April 2024). As a company director, you can pay yourself a small salary (at or below the NI threshold) and take the rest as dividends, which are taxed at lower rates: 8.75% basic, 33.75% higher, 39.35% additional.
However, running a limited company comes with extra costs: accountant fees (£1,000–£3,000/year), Corporation Tax (25%), Companies House filing, and more complex record-keeping. Use our sole trader vs limited company calculator to compare both structures side by side, or our dividend vs salary calculator to optimise your director's pay mix.
Frequently asked questions
How is self-employed tax calculated in the UK?
Self-employed tax is calculated on your trading profit (turnover minus allowable expenses). You pay Income Tax using the same bands as employees, plus Class 4 NI (6% on profits between £12,570 and £50,270, plus 2% above £50,270). Class 2 NI was abolished from April 2024.
What is Class 2 National Insurance?
Class 2 NI was abolished from April 2024 and is no longer charged. Self-employed people with profits above £12,570 build their State Pension entitlement automatically through Class 4 contributions. No separate weekly payment applies.
What is Class 4 National Insurance?
Class 4 NI is a profit-based contribution. For 2026/27, you pay 6% on profits between £12,570 and £50,270, and 2% on profits above £50,270. It is calculated and paid through your Self Assessment tax return.
What is Payment on Account?
If your tax bill exceeds £1,000, HMRC requires advance payments. Each Payment on Account is 50% of your previous year's tax bill, paid on 31 January and 31 July. A balancing payment follows on the next 31 January.
Can I deduct pension contributions from my self-employed income?
Yes. Personal pension contributions reduce your taxable profit for Income Tax purposes. This is one of the most tax-efficient ways for self-employed people to reduce their tax bill while building retirement savings.
When do I need to file my Self Assessment tax return?
For 2026/27 (ending 5 April 2026), the online filing deadline is 31 January 2027. The paper filing deadline is 31 October 2026. All tax owed must be paid by 31 January 2027.
How much tax does a self-employed person pay on £30,000?
On £30,000 profit in 2026/27, you pay £3,486 income tax and £1,046 Class 4 NI — a total of £4,532. Your take-home is £25,468 (effective rate 15.1%). Use the calculator above for an exact breakdown based on your expenses.
What expenses can I deduct as a self-employed person?
You can deduct any cost that is "wholly and exclusively" for business purposes. Common examples include office supplies, travel, phone and internet, professional subscriptions, software, marketing, insurance and accountancy fees. If you work from home, you can claim a proportion of household costs or use the simplified expenses flat rate (£6/week without receipts).
Do I need to register as self-employed with HMRC?
Yes. You must register for Self Assessment with HMRC by 5 October following the tax year in which you started trading. For example, if you started self-employment in August 2025, you must register by 5 October 2026. You can register online at GOV.UK. Late registration can result in penalties.
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