UK Self-Employed Tax Calculator 2026/27
Calculate Income Tax and Class 4 National Insurance on your sole trader profits
Self-Employed Rates 2026/27
- Personal Allowance£12,570
- Basic rate (20%)£12,571 – £50,270
- Higher rate (40%)£50,271 – £125,140
- Class 4 NI6% to £50,270, then 2%
- Class 2 NIVoluntary £3.65/week
Tax year 6 April 2026 – 5 April 2027, England, Wales & NI. Source: HMRC.
Profit
Take-Home
Monthly Take-Home
Total Tax & NI
How self-employed tax works in 2026/27
As a sole trader you pay Income Tax and Class 4 National Insurance on your profits (income minus allowable expenses) through Self Assessment. The Income Tax bands are the same as for employees.
| Profits | Income Tax | Class 4 NI |
|---|---|---|
| Up to £12,570 | 0% | 0% |
| £12,571 to £50,270 | 20% | 6% |
| £50,271 to £125,140 | 40% | 2% |
| Over £125,140 | 45% | 2% |
Class 2 National Insurance
Class 2 NI is no longer compulsory. If your profits are above £7,105 you get National Insurance credits automatically. If they are lower, you can pay voluntary Class 2 at £3.65 a week to protect your State Pension.
Worked example: £40,000 profit
After the £12,570 Personal Allowance, £27,430 is taxed at 20%, which is £5,486 Income Tax. Class 4 NI is 6% of £27,430, which is £1,646. You keep about £32,868 a year, or £2,739 a month.
Payments on account
If your tax bill is over £1,000, HMRC usually asks for two advance payments towards next year's bill, due 31 January and 31 July. Put aside roughly 20–30% of profits to be safe.
Scottish Income Tax rates differ. Results are estimates, not tax advice.