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Self Employed Tax Calculator UK

Last updated: February 2026

Calculate your income tax, National Insurance, and take home pay as a sole trader or freelancer. Updated for 2025/26 tax year.

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Self Employed Tax Calculator

Your total turnover before expenses
Office, travel, materials, etc.
Personal pension payments
Any PAYE income or other earnings
Annual Take Home
£0
Monthly
£0
Income Tax
£0
Total NI
£0
Effective Rate
0%
Income Breakdown
Business Income £0
Less: Business Expenses -£0
Taxable Profit £0
Tax Calculations
Personal Allowance £12,570
Income Tax (20%) -£0
Class 2 NI -£0
Class 4 NI (6%) -£0
Take Home Pay £0

Self Employed Tax Rates 2025/26

As a self-employed person in the UK, you pay Income Tax and National Insurance on your profits (income minus expenses).

Income Tax Rates

Band Taxable Income Rate
Personal Allowance Up to £12,570 0%
Basic Rate £12,571 - £50,270 20%
Higher Rate £50,271 - £125,140 40%
Additional Rate Over £125,140 45%

National Insurance (Self Employed)

Class When You Pay Rate
Class 2 Profits over £12,570/year £3.50/week (£182.00/year)
Class 4 (Lower) Profits £12,570 - £50,270 6%
Class 4 (Upper) Profits over £50,270 2%
Good News: Class 2 NI is now voluntary for most self-employed people, but paying it helps build your State Pension entitlement. We've included it in calculations above.

Self Employed Tax Examples

Freelancer - £30,000 Profit

Gross Income£35,000
Expenses-£5,000
Taxable Profit£30,000
Income Tax-£3,486
Class 2 NI-£179
Class 4 NI-£1,046
Take Home: £25,289/year
£2,107/month

Consultant - £50,000 Profit

Gross Income£60,000
Expenses-£10,000
Taxable Profit£50,000
Income Tax-£7,486
Class 2 NI-£179
Class 4 NI-£2,258
Take Home: £40,077/year
£3,340/month

Contractor - £75,000 Profit

Gross Income£90,000
Expenses-£15,000
Taxable Profit£75,000
Income Tax (20%)-£7,540
Income Tax (40%)-£9,892
Class 2 + 4 NI-£2,932
Take Home: £54,636/year
£4,553/month

Allowable Business Expenses

Reduce your taxable profit by claiming all allowable business expenses. Keep receipts and records for at least 5 years.

Office Costs

  • Stationery and printing
  • Phone and internet bills
  • Computer software
  • Postage

Travel

  • Business vehicle costs
  • Public transport fares
  • Hotel for business trips
  • Parking and tolls

Premises

  • Office rent and rates
  • Utilities (business portion)
  • Use of home (see below)
  • Property repairs

Professional

  • Accountant fees
  • Legal fees
  • Professional subscriptions
  • Training courses

Marketing

  • Website costs
  • Advertising
  • Business cards
  • Networking events

Financial

  • Business insurance
  • Bank charges
  • Interest on business loans
  • Credit card fees
Working From Home? You can claim £6 per week (£312/year) flat rate for home office expenses without receipts. Alternatively, calculate the actual proportion of household costs used for business.

Self Assessment Key Dates

Important deadlines for self-employed tax returns:

5 Apr

Tax Year Ends

End of 2025/26 tax year. Record all income and expenses up to this date.

5 Oct

Registration Deadline

Deadline to register for Self Assessment if you became self-employed in the previous tax year.

31 Oct

Paper Return Deadline

Last day to submit paper tax returns (most people now file online).

31 Jan

Online Filing & Payment

Deadline for online tax return AND payment of tax owed. Penalties apply if late.

31 Jul

Second Payment on Account

If you owe over £1,000, HMRC may require advance payments towards next year's bill.

Late Filing Penalties: £100 initial penalty, rising to £10/day after 3 months, then additional penalties at 6 and 12 months. Interest is also charged on late payments.

Reducing Your Self Employed Tax Bill

Tax-Efficient Strategies

  • Claim all expenses: Don't miss any allowable business costs
  • Pension contributions: Get tax relief at your marginal rate
  • Capital allowances: Claim for business equipment and vehicles
  • Loss relief: Offset losses against other income or carry forward
  • Marriage allowance: Transfer unused allowance to spouse if basic rate
  • Consider incorporation: At higher profits, a limited company may be more tax-efficient
Pension Tax Relief: If you contribute £1,000 to a personal pension, it only costs you £800 (basic rate) or £600 (higher rate) after tax relief. Great way to save for retirement and reduce your tax bill.

Key Self-Employment Tax Dates for 2025/26

Staying on top of HMRC deadlines is essential for every self-employed person in the UK. Missing a deadline can trigger automatic penalties and interest charges, so it pays to plan ahead. Below are the critical dates and obligations you need to know for the 2025/26 tax year.

Payments on Account Explained

If your Self Assessment tax bill exceeds £1,000 and less than 80% of your tax is collected at source (e.g., through PAYE on other employment), HMRC requires you to make advance payments towards your next year's tax bill. These are known as Payments on Account, and each payment is set at 50% of the previous year's tax liability. The first Payment on Account is due by 31 January 2026 (alongside your balancing payment for 2024/25), and the second Payment on Account is due by 31 July 2026. If your actual tax liability turns out to be lower than estimated, you can apply to HMRC to reduce your Payments on Account using form SA303.

Class 2 and Class 4 National Insurance for 2025/26

Self-employed individuals pay two classes of National Insurance. Class 2 NI costs £3.50 per week (£182.00 per year) and is payable if your profits exceed £12,570. Although Class 2 is now voluntary for most self-employed workers, paying it is strongly recommended because it counts towards your State Pension qualifying years and entitlement to certain benefits such as Maternity Allowance and bereavement support. Class 4 NI is charged at 6% on profits between £12,570 and £50,270, and at 2% on profits above £50,270. Both classes are collected through your Self Assessment tax return and paid at the same deadlines as your income tax.

Making Tax Digital (MTD) for Income Tax

A major change approaching self-employed taxpayers is Making Tax Digital for Income Tax Self Assessment (MTD for ITSA). From April 2026, self-employed individuals and landlords with annual gross income above £50,000 will be required to keep digital records and submit quarterly updates to HMRC using MTD-compatible software. Those with income above £30,000 will join from April 2027. Under MTD, you will need to send summary updates to HMRC every quarter instead of filing a single annual return. This means deadlines roughly every 3 months: by 7 August, 7 November, 7 February, and 7 May. You should start researching compatible accounting software now to ensure a smooth transition, as HMRC-approved options include FreeAgent, Xero, QuickBooks, and several others listed on the GOV.UK website.

Record-Keeping Requirements

HMRC requires self-employed individuals to keep accurate business records for at least 5 years after the 31 January submission deadline of the relevant tax year. For the 2025/26 tax year, this means retaining records until at least 31 January 2032. Records should include all sales and income, business expenses, VAT records (if VAT registered), PAYE records (if you employ staff), grant or support scheme payments, and personal income records. Failure to maintain adequate records can result in penalties of up to £3,000 per tax year.

Planning Ahead: Set calendar reminders for 31 January and 31 July each year. Consider setting aside approximately 25-30% of your profits throughout the year in a separate savings account to cover your tax and NI bill, so you are never caught short when payment deadlines arrive.

Frequently Asked Questions

What's the difference between self employed and sole trader? +
They're the same thing! A sole trader is a self-employed person running their own business. You're personally responsible for business debts, and you pay Income Tax and National Insurance on your profits through Self Assessment.
Do I need an accountant if I'm self employed? +
It's not legally required, but many self-employed people find accountants valuable. They can save you money through tax planning, ensure compliance, and save time on bookkeeping. For simple businesses, you may manage with accounting software and HMRC guidance.
Can I be employed and self employed at the same time? +
Yes. Many people have a PAYE job and run a side business. Your employer deducts tax and NI from your salary, and you declare self-employed income separately through Self Assessment. All income is added together to determine your tax band.
How do payments on account work? +
If your Self Assessment tax bill exceeds £1,000 and less than 80% is collected at source, HMRC requires advance payments towards next year. These are two payments of 50% each, due 31 January and 31 July. This spreads your tax payments.
What's the trading allowance? +
The £1,000 trading allowance lets you earn up to £1,000 from self employment tax-free without registering. If you earn more, you can choose to deduct the £1,000 allowance OR claim actual expenses - whichever gives the greater reduction.

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Comprehensive salary guide

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Expert Reviewed — This calculator is reviewed by our team of financial experts and updated regularly with the latest UK tax rates and regulations. Last verified: February 2026.

Pro Tips for Accurate Results
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Understanding Your Results

Our Self Employed Tax Calculator provides:

  • Instant calculations - Results appear immediately
  • Accurate formulas - Based on official UK standards
  • Clear explanations - Understand how results are derived
  • 2025/26 updated - Using current rates and regulations
Common Questions

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Our calculators use verified formulas and are regularly updated for accuracy.

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People Also Ask

You must file a Self Assessment tax return if you're self-employed earning over £1,000, have income over £100,000, earn untaxed income like rental or investment income, or are a company director. Deadline is 31 January for online filing.

Most employees are on 1257L for 2025/26, reflecting the £12,570 personal allowance. If you have multiple jobs, secondary employment uses BR (basic rate) code. Check your code on payslips or via HMRC online.

Maximise pension contributions (reduces taxable income), use your ISA allowance (tax-free savings), claim work-from-home relief if eligible, make gift aid donations, and ensure you're using all available allowances.

Official Data Source: Calculations use rates from HMRC Income Tax Rates 2025/26 | National Insurance Rates. Always verify with official sources for important financial decisions.

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Official Sources

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UK Calculator Editorial Team

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