Precision Utility
How Much Tax Self-
Employed? UK
For 2026/27, Class 2 is treated as paid when annual profits reach £7,105. Below that level voluntary Class 2 costs £3.65 a week. Class 4 applies above £12,570 at 6%, then 2% above £50,270. This calculator excludes voluntary Class 2.
Class 2 NI
Not compulsory
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. Pensions use relief at source: the gross contribution extends the tax bands and reduces adjusted net income, while you pay 80% into the pension. This estimate assumes trading profits are your only income and uses England, Wales and Northern Ireland income-tax rates.
Your Self-Employment
Tax basis
England, Wales and Northern Ireland; standard Personal Allowance, tapered above £100,000 adjusted net income. Scottish income tax and other income are not modelled. PAYE tax codes do not set the tax on these trading profits.
Relief-at-source pension: you pay 80% of the gross contribution; your provider adds 20%. Take-home includes any further income-tax relief due through Self Assessment. Pension annual allowances, tapering and carry-forward are not modelled.
Total Tax Payable
£5,832
Net Profit
£29,168
Monthly
£2,430.68
Trading Profit
£35,000
Effective Rate
16.7%
Income Tax
£4,486
Class 2 NI
£0
Class 4 NI
£1,345.80
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.
The pension percentage represents the gross amount entering a relief-at-source pension. You pay 80% and your provider claims 20%. Gross contributions extend the income-tax bands and reduce adjusted net income for the Personal Allowance taper; they do not reduce trading profit for Class 4 NI or student-loan repayments.
Income Tax uses the England, Wales and Northern Ireland bands: basic rate 20%, higher rate 40% and additional rate 45%. The standard Personal Allowance is £12,570 and tapers above £100,000 adjusted net income. This calculator does not model Scotland, other income or individual allowance adjustments.
For 2026/27, Class 2 is treated as paid when annual profits reach £7,105. Below that level voluntary Class 2 costs £3.65 a week. Class 4 applies above £12,570 at 6%, then 2% above £50,270. This calculator excludes voluntary Class 2.
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: No longer compulsory from April 2024 — £0 unless you pay voluntarily
- Class 4 NI: 6% on £12,570–£50,270, then 2% above £50,270
Payment on Account: Payments on account are normally required unless the relevant previous-year bill was below £1,000 or more than 80% of the tax was paid outside Self Assessment. Each instalment is normally half the relevant previous-year bill, due on 31 January and 31 July. Student-loan repayments and Capital Gains Tax are excluded from these instalments. This calculator shows annual liability, not a payment schedule.
Filing deadlines: For 2026/27 (ending 5 April 2027), the standard online filing and balancing-payment deadline is 31 January 2028; the standard paper deadline is 31 October 2027. Payments on account may fall due earlier. Check HMRC deadlines for your circumstances.
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 England, Wales and Northern Ireland 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
For 2026/27, Class 2 is treated as paid when annual profits reach £7,105. Below that level voluntary Class 2 costs £3.65 a week. Class 4 applies above £12,570 at 6%, then 2% above £50,270. This calculator excludes voluntary Class 2.
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
For 2026/27, Class 2 is treated as paid when annual profits reach £7,105. Below that level voluntary Class 2 costs £3.65 a week. Class 4 applies above £12,570 at 6%, then 2% above £50,270. This calculator excludes voluntary Class 2.
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
For 2026/27, Class 2 is treated as paid when annual profits reach £7,105. Below that level voluntary Class 2 costs £3.65 a week. Class 4 applies above £12,570 at 6%, then 2% above £50,270. This calculator excludes voluntary Class 2.
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?
For 2026/27, Class 2 is treated as paid when annual profits reach £7,105. Below that level voluntary Class 2 costs £3.65 a week. Class 4 applies above £12,570 at 6%, then 2% above £50,270. This calculator excludes voluntary Class 2.
Running a company brings separate accounting, filing and payroll obligations. The tax difference depends on profit, salary, dividends, employer NI and reliefs; there is no universal incorporation threshold. Use the sole trader versus limited company comparison for an illustration, with its stated exclusions.
Frequently asked questions
How is self-employed tax calculated in the UK?
Enter revenue and allowable business expenses to estimate trading profit. The calculator applies England, Wales and Northern Ireland Income Tax and Class 4 NI, with the pension and loan assumptions described on the page. It excludes voluntary Class 2 and does not model other income or a trading-allowance election.
What is Class 2 National Insurance?
For 2026/27, Class 2 is treated as paid when annual profits reach £7,105. Below that level voluntary Class 2 costs £3.65 a week. Class 4 applies above £12,570 at 6%, then 2% above £50,270. This calculator excludes voluntary Class 2.
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?
Payments on account are normally required unless the relevant previous-year bill was below £1,000 or more than 80% of the tax was paid outside Self Assessment. Each instalment is normally half the relevant previous-year bill, due on 31 January and 31 July. Student-loan repayments and Capital Gains Tax are excluded from these instalments. Check HMRC payment-on-account guidance.
Can I deduct pension contributions from my self-employed income?
Relief-at-source pension contributions receive 20% provider relief and may qualify for further relief through Self Assessment. Gross contributions extend income-tax bands and reduce adjusted net income for the Personal Allowance taper; they do not reduce trading profit for Class 4 NI or student loans.
When do I need to file my Self Assessment tax return?
For 2026/27 (ending 5 April 2027), the standard online filing and balancing-payment deadline is 31 January 2028. The standard paper filing deadline is 31 October 2027. Payments on account may fall due earlier.
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 (£10 to £26 a month without receipts, depending on hours worked).
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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Pension percentage means a gross relief-at-source contribution: you pay 80% and the provider adds basic-rate relief. See HMRC pension tax relief. The calculation extends the tax bands and adjusts your personal allowance; Class 4 remains based on trading profit. England, Wales and Northern Ireland only; no other income or trading-allowance election is modelled.