UK Self-Employed Tax Calculator 2025/26
Rates updated for 2025/26 tax year (from 6 April 2025)
Enter your gross self-employed income and business expenses to calculate your tax bill. Updated for the 2025/26 tax year with Class 4 NI at 6%, Class 2 NI at £3.45/week, and the £1,000 trading allowance.
How self-employed tax works
As a sole trader or self-employed person in the UK, you pay income tax on your profits at the same rates as employed workers (20%, 40%, 45%). You also pay two types of National Insurance: Class 2 (a flat weekly rate of £3.45) and Class 4 (6% on profits between £12,570 and £50,270, plus 2% above £50,270).
Trading allowance
If your total self-employed income is £1,000 or less, it is completely tax-free under the trading allowance. If your income is higher, you can choose to deduct the £1,000 trading allowance instead of your actual expenses — whichever gives you a lower taxable profit.
Payments on account
Most self-employed people must make two advance payments towards their next year's tax bill. Each payment is 50% of the previous year's tax liability. The first is due on 31 January (with your tax return) and the second on 31 July. Budget carefully, especially in your first year.
Class 4 NI rate changes
The Class 4 NI rate was reduced from 9% to 6% in April 2024, saving self-employed workers significantly. For 2025/26, the rate remains at 6% on profits between £12,570 and £50,270, and 2% above £50,270.
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Related calculators
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Your total self-employed income before expenses
Allowable business expenses (or use trading allowance if better)