Self-employed tax calculator
Self-Employed Tax Calculator UK 2026/27
Calculate your self-employment tax, Class 2 and Class 4 National Insurance, and take-home pay for 2026/27.Calculate your self-employment tax and take-home pay.
Your details
Your total self-employed income before expenses.
Business costs you can deduct (travel, equipment, phone, etc).
Rates shown are for 6 April 2026 – 5 April 2027.
Payment on Account
If your tax bill exceeds £1,000, you may need to make two payments on account — 50% of your estimated next-year tax paid in January and July.
Your results
Annual Take-Home Pay
£32,676Taxable profit
£40,000Income tax
£5,486Class 2 NICs
£192Class 4 NICs
£1,646Total tax + NICs
£7,324How it's calculated
Taxable profit: £40,000 − £0 = £40,000
Personal allowance (reduces above £100k): £12,570
Income tax (20% / 40% / 45% bands): £5,486
Class 2 NICs (£3.70/week × 52): £192
Class 4 NICs (6% on £12,570–£50,270, 2% above): £1,646
Total: £5,486 + £192 + £1,646 = £7,324
How Self-Employment Tax Works
As a self-employed sole trader in the UK, you pay three main taxes on your profits:
- Income tax — the same 20% / 40% / 45% bands as employed workers, applied to profits after the £12,570 personal allowance.
- Class 2 National Insurance — a flat £3.70 per week (£192.40/year) that counts towards your State Pension and contributory benefits.
- Class 4 National Insurance — 6% on profits between £12,570 and £50,270, then 2% above £50,270. No NI on profits below £12,570.
Payment on Account
If your tax bill for the current year exceeds £1,000, HMRC will ask you to make payments on account towards next year's tax. These are due on 31 January and 31 July, each covering 50% of your previous year's tax bill (excluding Class 2 NICs and student loans).
For example, if your 2026/27 tax bill is £8,000, you'd owe £4,000 on 31 January 2028 and £4,000 on 31 July 2028 — on top of any balancing payment for 2026/27.
Self-Assessment Tax Return
You must file a Self-Assessment tax return by 31 January following the end of the tax year. For 2026/27, the deadline is 31 January 2028. Late filing incurs a £100 penalty, plus daily charges after 3 months.
What Can I Deduct?
Allowable business expenses reduce your taxable profit and therefore your tax bill. Common deductions include:
| Expense | Examples |
|---|---|
| Travel | Fuel, train tickets, parking, vehicle insurance (business use only) |
| Equipment | Laptops, tools, machinery — or annual wear-and-tear allowance |
| Home office | Simplified rate: £6/week (no receipts needed) or proportion of rent, broadband, electricity |
| Phone & internet | Business-use proportion of mobile and broadband bills |
| Professional fees | Accountant, solicitor, trade body subscriptions |
| Insurance | Professional indemnity, public liability, business contents |
| Marketing | Website hosting, advertising, business cards |
| Training | Courses directly related to your current trade |
Not allowable: commuting from home to a permanent workplace, clothing (unless uniform), meals, personal fines, entertainment (with limited exceptions).
Frequently asked questions about self-employed tax
How much tax does a self-employed person pay in the UK?
Self-employed tax is made up of income tax plus Class 2 and Class 4 National Insurance. On a £40,000 profit with no expenses, you'd pay approximately £5,478 in income tax and Class 4 NICs, plus £192.40 Class 2 — a total of around £5,670, leaving a take-home of roughly £34,330. Use our calculator above for an exact figure based on your profits.
What is the difference between Class 2 and Class 4 NICs?
Class 2 NICs are a flat weekly rate (£3.70 in 2026/27) that you pay to build up State Pension and contributory benefit entitlement. Class 4 NICs are a percentage of your profits — 6% on profits between £12,570 and £50,270, then 2% above that. Class 2 is a fixed cost; Class 4 scales with your earnings.
Do I pay tax on my first year self-employed?
Yes, but you may get a lower bill. Your first tax return covers part of two tax years if you start mid-year, and your personal allowance applies proportionally. You also get the full-year Class 2 NIC allowance regardless of when you started. Your first payment on account may be based on a nil return if your previous year's tax was under £1,000.
How do I register as self-employed?
Register for Self-Assessment with HMRC by 5 October after the end of the tax year in which you started trading. You can register online at GOV.UK — Register for Self-Assessment. You'll receive a Unique Taxpayer Reference (UTR) number within 10 working days.
What is payment on account?
Payments on account are advance payments towards your next year's tax bill. If your current year's tax (excluding Class 2 NICs and student loans) exceeds £1,000, you must make two equal payments: 50% on 31 January and 50% on 31 July. If your actual tax is lower the following year, HMRC refunds the overpayment. If higher, you pay the difference as a balancing payment on 31 January.
Can I claim mileage instead of fuel costs?
Yes. HMRC's Approved Mileage Allowance Payments (AMAPs) let you claim 45p per mile for the first 10,000 business miles and 25p per mile thereafter. This covers fuel, insurance, servicing and depreciation. You cannot claim both mileage and actual running costs for the same vehicle.
Related calculators
Managing your self-employed finances
Being self-employed means handling your own tax, pension and business banking. These are tools and accounts a lot of sole traders look at.
Self-assessment tax software
File your Self Assessment without the spreadsheet headache. Compare self-employed tax software that walks you through the return step by step.
Compare tax software
Business bank accounts
Separate your business and personal finances. Compare business current accounts with features for sole traders and freelancers.
Compare business accounts
Pension for the self-employed
No employer pension means you set it up yourself. Compare personal pension and SIPP options to plan for retirement on your own terms.
Compare personal pensions
Some links below are sponsored — wagecheck may earn a commission if you take out a product through them, at no extra cost to you. This helps keep the calculators free.
How we calculate self-employed tax
If your profits are above the £1,000 trading allowance, you pay Income Tax on profits after expenses, plus Class 2 and Class 4 National Insurance. The calculator applies the 2026/27 tax bands: 20% on the first £37,700 of taxable profit, 40% up to £125,140, and 45% above that. Class 4 NICs are 6% on profits between £12,570 and £50,270, then 2% above.
Use the calculator above to see your exact breakdown. Results are estimates — your actual tax may differ based on Scottish residency, marriage allowance, pension contributions, and other reliefs. Always check with HMRC or a qualified accountant for your specific situation.