Self-employed tax calculator 2026/27
United Kingdom · 2026/27 tax year
Also for United StatesIf you are a sole trader or freelancer, you pay income tax and Class 4 National Insurance on your profits through Self Assessment. See how much to put aside.
How sole traders are taxed in 2026/27
- Income tax on your profit, at the same rates as everyone else, after your £12,570 personal allowance.
- Class 4 National Insurance: 6% on profits between £12,570 and £50,270, and 2% on profits above £50,270.
- Class 2 National Insurance is no longer compulsory. If your profits are low, you can choose to pay it voluntarily to protect your State Pension record.
Example: £35,000 profit
Income tax is 20% of £22,430 (£35,000 minus £12,570) = £4,486. Class 4 NI is 6% of £22,430 = £1,345.80. The total bill is £5,831.80, so you would set aside about £486 a month.
Expenses or the trading allowance?
You can deduct allowable business costs, such as equipment, travel, phone and materials, from your income. If your costs are small, you can instead claim the £1,000 trading allowance. You cannot claim both.
Key Self Assessment dates
| Date | What happens |
|---|---|
| 5 October 2027 | Deadline to register for Self Assessment if you started trading in 2026/27 |
| 31 January 2028 | Online tax return deadline, and payment of the 2026/27 balance plus the first payment on account |
| 31 July 2028 | Second payment on account |
Frequently asked questions
What are payments on account?
If your Self Assessment bill is over £1,000, HMRC usually asks you to pay towards next year's bill in advance: two payments, each half of this year's bill, due on 31 January and 31 July.
Do I need to register as self-employed?
Yes, if you earn more than £1,000 from self-employment in a tax year. Register for Self Assessment by 5 October after the end of the tax year you started.
An estimate for guidance only. It does not include VAT, Class 2 NI, capital allowances or other income such as property or savings.
Last checked and updated: October 2026 (2026/27 tax year)