UK Self-Employed Tax Calculator 2026/27
Enter your gross self-employed income and business expenses to calculate your tax bill. Updated for the 2026/27 tax year with Class 4 NI at 6%, Class 4 NI, optional Class 2 contributions, 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%). Class 4 National Insurance is 6% on profits between £12,570 and £50,270, then 2% above. Compulsory Class 2 charges have been abolished; eligible profits are treated as paid for benefit-record purposes, and people below the Small Profits Threshold can choose voluntary Class 2.
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 2026/27, the rate remains at 6% on profits between £12,570 and £50,270, and 2% above £50,270.
Starts 6 April 2026
Making Tax Digital is now mandatory for you
If your gross self-employed income is over £50,000, you must file quarterly digital returns to HMRC starting this month. You need MTD-compatible software.
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Quick lookups
Scottish tax rates
Scottish taxpayers use different income tax bands. Start with the Scottish self-employed calculator for a full explanation and tailored estimate.
Related calculators
- Compare your self-employed tax bill with what you would pay as an employee on the same income.
- See a detailed breakdown of Class 2 and Class 4 National Insurance for the self-employed.
- Self-employed? Set up pension contributions to reduce your tax bill and get government top-ups.
- Running a limited company? Compare paying yourself through dividends vs. self-employment.
- View all UK income tax bands and rates for 2026/27.
- See the full NI rates for Class 2 and Class 4 contributions.
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Self-Employed Tax Calculator
Using HMRC rates for the 2026/27 tax year