Self-Employed Tax Calculator
Income Tax and Class 4 National Insurance on your sole-trader profit, 2026/27 rates.
How is self-employed tax calculated?
Self-employed profit is taxed through Income Tax at the same rates as employment (20% basic, 40% higher, 45% additional, above your £12,570 Personal Allowance), plus Class 4 National Insurance at 6% on profits between £12,570 and £50,270, and 2% above that. Compulsory Class 2 NI was abolished from April 2024, but you can still pay it voluntarily at £3.65 a week to keep building your State Pension entitlement if your profits are low. Both taxes are calculated on your trading profit — turnover minus allowable business expenses — not your turnover itself.
Frequently asked questions
What National Insurance do the self-employed pay?
Class 4 NI: 6% on profits between £12,570 and £50,270, and 2% above that. Compulsory Class 2 NI was abolished from April 2024 — you can still pay it voluntarily at £3.65/week to protect your State Pension record if your profits are low.
Is trading profit the same as turnover?
No — trading profit is your turnover (total income) minus allowable business expenses. Tax and Class 4 NI are calculated on profit, not on turnover, so keeping accurate expense records directly reduces your bill.
When do self-employed people pay their tax bill?
Via Self Assessment, normally by 31 January following the end of the tax year, with many self-employed people also making a "payment on account" toward the next year's bill at the same time and again by 31 July.
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