Self-employed tax calculator 2026/27
Sole traders pay income tax on profit above the £12,570 Personal Allowance, at 20%, 40% and 45% in England, Wales and Northern Ireland, plus Class 4 National Insurance of 6% on profits between £12,570 and £50,270 and 2% above. On £30,000 of profit and no other income, that is £4,531.80 for 2026/27. Class 2 is no longer compulsory, and the bill is due by 31 January 2028.
How much tax will I pay on my self-employed profit?
Enter your sales and expenses for the 2026/27 tax year (6 April 2026 to 5 April 2027). The result updates as you type, and nothing you enter is stored or sent anywhere.
Your result
Enter your sales to see the tax on your profit.
You'll see your income tax, Class 4 National Insurance, take-home, effective rate, payments on account and whether Making Tax Digital applies, with the assumptions behind the figures.
Turnover over £20,000?
Making Tax Digital for Income Tax may already apply to you, and it will from 6 April 2028 if your 2026/27 qualifying income is over £20,000. Our guide to Making Tax Digital for Income Tax explains what to do and when.
How much tax do I pay if I'm self-employed?
You pay income tax and Class 4 National Insurance on your profit. Income tax looks at all your income together, so a salary or pension uses your Personal Allowance and lower bands first. Class 4 is charged on your profit alone (GOV.UK: Income Tax rates; GOV.UK: self-employed National Insurance rates).
| Tax or allowance | 2026/27 | Who it applies to |
|---|---|---|
| Personal Allowance | £12,570; £1 lost for every £2 of adjusted net income over £100,000 | All UK taxpayers |
| Basic rate | 20% on £12,571 to £50,270 | England, Wales, Northern Ireland |
| Higher rate | 40% on £50,271 to £125,140 | England, Wales, Northern Ireland |
| Additional rate | 45% over £125,140 | England, Wales, Northern Ireland |
| Class 4 National Insurance | 6% on profits from £12,570 to £50,270; 2% above | UK self-employed |
| Class 2 National Insurance | Not compulsory; treated as paid at profits of £7,105 or more; voluntary £3.65 a week | UK self-employed |
| Trading allowance | £1,000, instead of actual expenses | Individuals, not partnerships |
Wales uses the same rates as England (GOV.UK: Welsh Income Tax). Above £100,000 the Personal Allowance tapers away (GOV.UK: income over £100,000), so, by our arithmetic, with no other income each extra £1 of profit between £100,000 and £125,140 costs 62%: 40% tax, 20% on the lost allowance and 2% Class 4.
Scottish income tax rates for 2026/27
In Scotland your profit is taxed at Scottish rates (GOV.UK: Scottish Income Tax). The Personal Allowance and Class 4 are UK-wide.
| Band | Income | Rate |
|---|---|---|
| Starter | £12,571 to £16,537 | 19% |
| Basic | £16,538 to £29,526 | 20% |
| Intermediate | £29,527 to £43,662 | 21% |
| Higher | £43,663 to £75,000 | 42% |
| Advanced | £75,001 to £125,140 | 45% |
| Top | Over £125,140 | 48% |
How is my taxable profit worked out?
Profit is your sales less allowable business expenses, such as stock, travel, phone and software. Our guide to the tax reliefs business owners miss and our mileage calculator help you claim them.
Instead of expenses you can deduct the £1,000 trading allowance, but not both (GOV.UK: tax-free allowances on property and trading income), so it only helps if your expenses are under £1,000. Trading income of £1,000 or less is covered in full. Above that, new filers must register for Self Assessment by 5 October 2027 for 2026/27 (GOV.UK: register for Self Assessment). Some income can't use it; see the FAQ.
Worked example: £30,000 of profit
A sole trader in England with £40,000 of sales, £10,000 of expenses and no other income:
- Profit: £40,000 − £10,000 = £30,000.
- Income tax: (£30,000 − £12,570) × 20% = £3,486.
- Class 4 National Insurance: (£30,000 − £12,570) × 6% = £1,045.80.
- Total: £4,531.80, or 15.1% of profit. You keep £25,468.20.
- When you pay: £6,797.70 on 31 January 2028 (the £4,531.80 bill plus a first payment on account of £2,265.90), then £2,265.90 on 31 July 2028, if you made no payments on account for 2026/27.
With a £25,000 salary that uses up the Personal Allowance, a £25,000 profit is all taxed at 20%: £5,000 of income tax plus £745.80 of Class 4, about 23% of the profit.
When do I pay, and what are payments on account?
Your 2026/27 return and bill are due by 31 January 2028 (GOV.UK: Self Assessment deadlines). If the bill is £1,000 or more, HMRC also asks for two payments on account towards 2027/28, each usually half this year's bill, unless more than 80% of your tax was collected at source (GOV.UK: payments on account).
| Date | What is due (first year with a bill) |
|---|---|
| 5 October 2027 | Register for Self Assessment if you haven't sent a return before |
| 31 January 2028 | 2026/27 online tax return; the 2026/27 bill in full (balancing payment) plus the first 50% payment on account for 2027/28 |
| 31 July 2028 | Second 50% payment on account for 2027/28 |
So your first January bill can be 150% of a year's tax. Every date is in our 2026/27 tax deadlines calendar.
Do I still pay Class 2 National Insurance?
No, it's no longer compulsory (GOV.UK: self-employed National Insurance rates). With profits of £7,105 or more it's treated as paid, so the year counts towards your State Pension for free. Below that, voluntary Class 2 costs £3.65 a week, far less than voluntary Class 3 at £18.40 a week (GOV.UK: National Insurance rates and allowances).
How does Making Tax Digital affect sole traders?
Making Tax Digital for Income Tax applies when qualifying income (self-employment turnover plus property income, before expenses) is over the threshold (GOV.UK: when you need to use Making Tax Digital):
- over £50,000 in 2024/25: from 6 April 2026
- over £30,000 in 2025/26: from 6 April 2027
- over £20,000 in 2026/27: from 6 April 2028
It's turnover, not profit. In 2026/27 there are no penalty points for late quarterly updates, but you must still send them (GOV.UK: Making Tax Digital penalties). Use our Making Tax Digital checker and read our guide to Making Tax Digital for Income Tax.
What this calculator doesn't cover
- Savings, dividends and rental income: try our dividend tax calculator or landlord tax calculator.
- Pension contributions and Gift Aid, which reduce your adjusted net income and can restore Personal Allowance lost above £100,000.
- Class 1 National Insurance and student loan repayments: our take-home pay calculator covers salaries.
- Trading losses and partnership profit shares. Include any capital allowances in your expenses figure.
- Marriage Allowance, the High Income Child Benefit Charge and payments on account already made for 2026/27.
Would a limited company cost less tax? Try our sole trader vs limited company calculator, or let our personal tax service prepare your return and plan your payments on account.
Plan your next step
Sole trader vs limited company
See whether running your business through a company would leave you more after tax.
Compare CheckerMaking Tax Digital checker
Find out if and when you need to keep digital records and send quarterly updates.
Check now GuideMaking Tax Digital for Income Tax
Thresholds, quarterly updates, software and penalties for sole traders and landlords.
Read the guide ServicePersonal tax
Your Self Assessment return prepared and filed, with your payments on account planned ahead.
See the serviceFree white paper
Making Tax Digital for sole traders and landlords
Who is in and when, what the quarterly updates involve, and the reliefs sole traders most often under-claim. Free to download.
Frequently asked questions
How much tax do I pay if I'm self-employed?
In 2026/27 you pay income tax on profit above your £12,570 Personal Allowance: 20% up to £50,270, 40% up to £125,140 and 45% above that in England, Wales and Northern Ireland. You also pay Class 4 National Insurance at 6% on profits between £12,570 and £50,270 and 2% above. With no other income, £30,000 of profit means £3,486 of income tax and £1,045.80 of Class 4.
Do I still have to pay Class 2 National Insurance?
No. Class 2 is no longer compulsory. If your profits are £7,105 or more, it is treated as paid, so the year still counts towards your State Pension. If your profits are lower, you can choose to pay voluntary Class 2 at £3.65 a week to protect your National Insurance record.
Why is my first Self Assessment bill so big?
Because of payments on account. If your bill is £1,000 or more and no more than 80% of your tax was collected at source, HMRC asks for two advance payments towards the next year, each usually half of this year's bill. For 2026/27, 31 January 2028 brings the full 2026/27 bill plus the first 50% payment on account, so you pay 150%. The second 50% is due on 31 July 2028.
Should I use the £1,000 trading allowance or claim my expenses?
Use the trading allowance only if your allowable expenses are under £1,000, because you deduct one or the other, not both. If your total trading income is £1,000 or less, the allowance covers all of it. You cannot use it for partnership income, or for income from your employer, your spouse's or civil partner's employer, or a company you or a connected person controls.
Written and reviewed by George Nicholson BFP ACA, ICAEW Chartered Accountant. Last reviewed 20 October 2026. This page is general information, not personal advice.
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