UK Self-Employed Tax Calculator 2026/27
Estimate your Income Tax and Class 4 National Insurance as a sole trader or freelancer.
✓ 2026/27 rates — Class 4 NI 6%/2% | Income Tax 20%/40%/45%
Turnover minus allowable business expenses (before tax)
Reduces your adjusted net income — enter the gross amount (including tax relief)
How Is Self-Employed Tax Calculated in the UK?
As a self-employed sole trader or freelancer in the UK, you pay two main taxes on your profits: Income Tax and Class 4 National Insurance Contributions (NICs). Both are calculated on your net profit — your turnover minus allowable business expenses. You report and pay these through Self Assessment, with the deadline of 31 January following the end of the tax year.
2026/27 Self-Employed Tax Rates
| Tax | Rate | On profits |
|---|---|---|
| Income Tax — Personal Allowance | 0% | Up to £12,570 |
| Income Tax — Basic Rate | 20% | £12,571 – £50,270 |
| Income Tax — Higher Rate | 40% | £50,271 – £125,140 |
| Income Tax — Additional Rate | 45% | Over £125,140 |
| Class 4 NI — Main Rate | 6% | £12,570 – £50,270 |
| Class 4 NI — Higher Rate | 2% | Over £50,270 |
Rates effective 6 April 2026. Source: HMRC.
Frequently Asked Questions
What is the difference between employed and self-employed tax?
Employees pay Income Tax and Class 1 NI, deducted automatically via PAYE. Self-employed people pay Income Tax and Class 4 NI through Self Assessment. The Income Tax rates are the same, but Class 4 NI rates (6%/2%) are lower than employee Class 1 NI (8%/2%). Self-employed people are also responsible for paying their own tax bill by 31 January — it is not deducted automatically.
Do I still pay Class 2 National Insurance?
No. Class 2 NI was abolished from 6 April 2024. Self-employed people with profits above the Small Profits Threshold (£6,725) now automatically receive NI credits toward their State Pension through their Class 4 NI contributions, without paying Class 2 separately.
What expenses can I deduct to reduce my self-employed tax?
You can deduct any allowable business expense incurred wholly and exclusively for your business. Common deductions include: office costs, travel and mileage, equipment, software subscriptions, professional fees, marketing costs, and a proportion of home costs if you work from home. Pension contributions also reduce your adjusted net income, lowering both Income Tax and NI.
What are Payments on Account?
If your Self Assessment tax bill is over £1,000, HMRC requires you to make advance payments toward next year's bill — called Payments on Account. You pay 50% in January and 50% in July. This means your first year of self-employment can result in a higher-than-expected January bill. Always set aside money throughout the year to cover your tax bill.
What to work out next
⚠️ Disclaimer: Results are estimates only and do not constitute financial, tax, or legal advice. Tax laws change frequently — always verify with official sources (IRS, HMRC) and consult a qualified professional before making decisions.
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