Self-Employed Tax Calculator UK 2026/27 — Sole Trader Tax Bill

📅 Tax Year 2026/27 — Self Assessment

💼 Your Trading Profits

Annual Trading Income (Revenue/Sales)

Allowable Business Expenses

Include costs directly related to running your business (e.g. equipment, materials, mileage, office costs)

Use Trading Allowance instead of expenses?

No — I'll use actual expenses Yes — use £1,000 trading allowance

The trading allowance (£1,000) can sometimes be simpler if your expenses are low.

Other Income this year (PAYE salary, etc.)

If you also have employment income, enter it here — it affects your tax bands.

📊 Your Self-Employed Tax Bill

Trading Income —

Less: Expenses / Allowance —

Trading Profit —

Personal Allowance —

Income Tax —

Class 4 National Insurance —

Total Tax & NI Due —

        Estimated Take-Home Profit
        —
      

Effective Tax Rate —

💡 Payment on Account: HMRC may require you to make payments on account (advance payments) for next year. Set aside approximately 50% of your tax bill as an initial saving.

📋 Self-Employed NI Rates 2026/27

Class	Threshold	Rate
Class 2 NI	Profits > £6,725/yr	Treated as paid (no cost) if profits > £12,570
Class 4 NI	£12,570 – £50,270	6%
Class 4 NI	Over £50,270	2%

Class 2 NI was effectively abolished for those with profits above the Lower Profits Limit from 2024/25. State pension entitlement is protected.

⚠️ Disclaimer This calculator provides estimates for England, Wales and Northern Ireland. Your actual tax bill is assessed through Self Assessment. File your tax return at gov.uk or use an accountant. Payments on account and balancing payments have specific deadlines.

📌 Rates sourced from Self-employed tax and National Insurance — verified for the 2026/27 tax year.

Frequently Asked Questions

How much tax does a self-employed person pay in 2026/27?

Self-employed people pay income tax at the same rates as employees (20%, 40%, 45%) on their profits above the £12,570 personal allowance. They also pay Class 4 National Insurance at 6% on profits between £12,570 and £50,270, and 2% on profits above £50,270. Class 2 NI was abolished from April 2024.

Do self-employed people pay National Insurance?

Yes. Self-employed people pay Class 4 NI: 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 charge.

What is the trading income allowance?

The trading income allowance is £1,000 per tax year. If your gross self-employment income is £1,000 or less, you do not need to report it to HMRC. If your income is higher, you can deduct either the £1,000 allowance or your actual expenses — whichever is more beneficial.

What is the Self Assessment deadline?

The deadline to file your Self Assessment tax return online is 31 January after the end of the tax year. So for 2024/25 (ending 5 April 2025), you must file by 31 January 2026. The same date is the deadline to pay any tax owed.