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Self-Employed Tax Calculator

Estimate income tax and Class 4 National Insurance on your trading profits for 2026/27.

Inputs

GBP
GBP
2026/27: Personal allowance £12,570. Class 2 NI abolished from April 2024. Class 4 NI: 6% on profits £12,570–£50,270, 2% above. Payments on account (50% of prior year’s tax bill) are due 31 Jan and 31 Jul each year. Income tax uses England/Wales/NI bands.

Total Tax & NI

Income tax + Class 4 NI
£0

How self-employed tax works

If you are self-employed, you pay income tax on your trading profit (revenue minus allowable expenses) through Self Assessment. The same income tax bands apply as for employees — 20% basic, 40% higher, 45% additional — but instead of PAYE, you file a tax return and pay your bill by 31 January following the end of the tax year.

Unlike employees, the self-employed also pay Class 4 National Insurance directly: 6% on profits between £12,570 and £50,270, and 2% on profits above £50,270. Class 2 NI was abolished from April 2024, so there is no longer a flat weekly contribution. The Class 4 contributions still count towards your State Pension entitlement.

HMRC also requires payments on account — advance payments toward the next year's bill. Each payment is 50% of your prior year's Self Assessment tax liability, due on 31 January and 31 July. This means a newly self-employed person can face a large combined bill (prior year balance + first payment on account) in January.

FAQ

What expenses can I deduct?
Allowable expenses include office costs, travel (not commuting), clothing (uniforms only), staff costs, stock and materials, financial and legal fees, and marketing. HMRC's flat-rate simplified expenses are available for mileage, working from home, and business use of your home.
Do I still need to pay Class 2 NI?
No — Class 2 National Insurance was abolished from 6 April 2024. If your profits exceed the Small Profits Threshold (£12,570 in 2026/27), your State Pension entitlement is now protected through your Class 4 contributions automatically.
What is Making Tax Digital (MTD)?
From April 2026, self-employed people and landlords with gross income above £50,000 must file quarterly updates to HMRC using approved software (MTD for Income Tax). The threshold drops to £30,000 in April 2027. Annual returns are replaced by quarterly submissions plus a year-end declaration.
How do payments on account work?
If your Self Assessment tax bill exceeds £1,000, HMRC requires two advance payments: 50% by 31 January (along with any balancing payment for the previous year) and 50% by 31 July. In your first year of self-employment, you pay the full year's tax plus the first payment on account all at once in January.