Self-Employed Tax Calculator
Calculate your Income Tax and National Insurance as a sole trader or freelancer. See exactly how much you'll owe HMRC including payments on account.
Your Business Income
Enter your self-employed income for 2025/26
Office costs, travel, stock, professional fees, etc.
Your Take-Home
After tax and National Insurance
Payments on Account (Estimated)
If your tax bill is over £1,000, HMRC requires "payments on account" - advance payments towards next year's tax bill, based on this year's liability.
This is your first year - you'll pay this year's tax plus half of next year's estimated tax
Self-Employed NI Breakdown
Class 2 National Insurance
Flat rate of £3.45/week (£179.40/year)
Only due if profits exceed the Small Profits Threshold of £6,725
Class 4 National Insurance
6% on profits between £12,570 and £50,270
2% on profits above £50,270
Self-Employed Tax Rates 2025/26
Income Tax Bands
National Insurance
Common Allowable Expenses
Office & Equipment
- • Computer equipment
- • Software subscriptions
- • Office supplies
- • Phone & internet
Travel & Vehicles
- • Business travel
- • Vehicle costs (45p/mile)
- • Parking fees
- • Public transport
Professional
- • Accountancy fees
- • Professional insurance
- • Training courses
- • Marketing costs
Frequently Asked Questions
What tax do self-employed people pay in the UK?
Self-employed people pay Income Tax on their profits (after expenses) at the same rates as employees: 20% basic rate, 40% higher rate, 45% additional rate. They also pay Class 2 NI (£3.45/week if profits exceed £6,725) and Class 4 NI (6% on profits between £12,570-£50,270, 2% above).
What is the difference between Class 2 and Class 4 National Insurance?
Class 2 NI is a flat-rate weekly contribution (£3.45/week in 2025/26) that builds your State Pension entitlement. Class 4 NI is profit-based (6% on £12,570-£50,270, 2% above) and doesn't add to your pension record. Both are collected through Self Assessment.
Do I need to pay tax on my first £1,000 of self-employed income?
The Trading Allowance lets you earn up to £1,000 from self-employment tax-free without needing to tell HMRC. If you earn more, you can either deduct £1,000 from your income (instead of actual expenses) or claim actual expenses. You cannot use both.
What are payments on account?
If your Self Assessment tax bill is over £1,000, HMRC requires advance payments towards next year's tax. You pay half on 31 January and half on 31 July. This means in your first year, you may need to pay 150% of your tax bill (this year's tax plus half of next year's).
Can I claim expenses against my self-employed income?
Yes, you can deduct allowable business expenses from your turnover to reduce taxable profits. Common expenses include: office costs, travel, stock/materials, professional fees, marketing, insurance, and a proportion of home costs if you work from home.
When do I need to file a Self Assessment tax return?
You must file a Self Assessment if you were self-employed and earned more than £1,000 (before expenses). The deadline is 31 January for online returns. You must also pay any tax owed by this date. Late filing incurs a £100 penalty.