GigMath › UK Self-Employed Tax Calculator

UK Self-Employed Tax Calculator

Estimate the income tax and National Insurance you'll pay as a sole trader in England, Wales or Northern Ireland, and how much of your profit you actually keep.

Updated October 2026 · UK · 2026/27

Your business

£
£

Only worth it if your real expenses are under £1,000.

£

Uses up your tax-free allowance first. Tax on it is assumed to be paid through PAYE.

Your take-home profit

£0

    Rates for England, Wales and Northern Ireland. Scotland has different income tax bands. Student loan repayments are not included.

    How sole traders are taxed in 2026/27

    As a sole trader you pay tax on your profit, which is your turnover minus allowable business expenses. There are two main taxes: income tax and Class 4 National Insurance. Both are calculated and paid through your Self Assessment tax return.

    Income tax rates 2026/27 (England, Wales, NI)

    BandTaxable incomeRate
    Personal AllowanceUp to £12,5700%
    Basic rate£12,571 – £50,27020%
    Higher rate£50,271 – £125,14040%
    Additional rateOver £125,14045%

    Your Personal Allowance goes down by £1 for every £2 of income over £100,000, so it disappears completely at £125,140.

    National Insurance for the self-employed

    ProfitClass 4 rate
    Up to £12,5700%
    £12,570 – £50,2706%
    Over £50,2702%

    Compulsory Class 2 National Insurance was abolished in April 2024. If your profits are above the small profits threshold you still get National Insurance credits for your State Pension automatically. If they're below it, you can choose to pay Class 2 voluntarily.

    Example: with £45,000 of turnover and £5,000 of expenses, your profit is £40,000. You'd pay about £5,486 income tax and £1,646 National Insurance, keeping around £32,868.

    Key dates

    • 5 October 2027: register for Self Assessment if 2026/27 is your first year.
    • 31 January 2028: file your 2026/27 return online and pay the balance, plus your first payment on account for 2027/28.
    • 31 July 2028: second payment on account.

    Ways to reduce your bill legally

    • Claim every allowable expense: equipment, software, phone and internet (business share), working from home, travel and professional fees.
    • Pay into a personal pension: you get tax relief on contributions.
    • Keep records from day one, so nothing gets missed at year end.
    • Contracting on a day rate? Compare it with a salary using our contractor day rate calculator.

    Frequently asked questions

    How much tax does a self-employed person pay in the UK?

    Income tax at 20%, 40% or 45% on profit above the £12,570 Personal Allowance, plus Class 4 National Insurance at 6% on profit between £12,570 and £50,270 and 2% above that (2026/27).

    How much can I earn self-employed before paying tax?

    You can earn up to £12,570 of profit before paying income tax or Class 4 National Insurance, as long as you have no other income using up your Personal Allowance. Self-employed income under £1,000 is covered by the trading allowance.

    Do I still pay Class 2 National Insurance?

    No, compulsory Class 2 contributions were abolished from April 2024. You can still pay voluntarily if your profits are low to protect your State Pension record.

    What are payments on account?

    If your Self Assessment bill is over £1,000, HMRC usually asks for two advance payments towards next year's bill, each half of this year's bill, due on 31 January and 31 July.

    Sources

    This calculator gives estimates for planning only. It is not tax, legal or financial advice. Rules and fees change, so check the official source or a qualified professional before making decisions.