Self Employed Tax Calculator UK 2025

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 £3.45/week (£179.40/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

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.

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.

Related Calculators

Income Tax Calculator

Full UK income tax calculator

NI Calculator

National Insurance contributions

Take Home Pay Guide

Comprehensive salary guide

Related Calculators

Income Tax Calculator • VAT Calculator • Corporation Tax • Capital Gains Tax

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: January 2026.

Pro Tips for Accurate Results
  • Double-check your input values before calculating
  • Use the correct unit format (metric or imperial)
  • For complex calculations, break them into smaller steps
  • Bookmark this page for quick future access
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

Is this calculator free?

Yes, all our calculators are 100% free to use with no registration required.

Are the results accurate?

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

Can I use this on mobile?

Yes, all calculators are fully responsive and work on any device.

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 2024/25, 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.

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