Self-Employed Tax Calculator
Advanced options
Taxable Profit
£40,000
£50,000 revenue − £10,000 expenses
Total Tax Bill
£7,132
Effective rate: 17.8%
Take-Home Pay
£32,868
£2,739/month · £632/week
How Your Profit Breaks Down
Tax Breakdown
Effective Rate
17.8%
Marginal Rate
26.0%
Personal Allowance
£12,570
Monthly Take-Home
£2,739
Payment Schedule
No payment on account in your first year of self-employment.
Key Dates for 2025/26
Tax Year Ends
5 April 2026
Paper SA Deadline
31 October 2026
Online SA Deadline & 1st POA
31 January 2027
2nd Payment on Account
31 July 2027
Understanding Self-Employed Tax
As a self-employed sole trader, you pay tax on your taxable profit — your total revenue minus allowable business expenses. This profit is then subject to Income Tax (at the same rates as employees) and Class 4 National Insurance.
New for 2025/26: Class 2 NI Abolished
From April 2025, you no longer need to pay Class 2 National Insurance. If your profits are £6,845 or more, your NI record is automatically credited. This saves you £182/year compared to previous years.
Self-Employed Tax Reference Table
| Profit | Income Tax | Class 4 NI | Take-Home | Effective Rate |
|---|---|---|---|---|
| £15,000 | £486 | £145.8 | £14,368 | 4.2% |
| £25,000 | £2,486 | £745.8 | £21,768 | 12.9% |
| £35,000 | £4,486 | £1,345.8 | £29,168 | 16.7% |
| £50,000 | £7,486 | £2,245.8 | £40,268 | 19.5% |
| £75,000 | £17,486 | £2,742 | £54,772 | 26.9% |
| £100,000 | £27,486 | £3,242 | £69,272 | 30.7% |
Based on 2025/26 rates. No other income, pension, or student loans. Figures are approximate.
Employed vs Self-Employed Tax Comparison
Employed (PAYE)
- Class 1 NI: 8% + 2%
- Tax deducted automatically each month
- Employer pays employer NI (15%)
- No Self Assessment (usually)
- Expenses: limited claims
Self-Employed
- Class 4 NI: 6% + 2% (lower!)
- Tax paid via Self Assessment
- No employer NI to pay
- Annual Self Assessment required
- Full business expense deductions
Making Tax Digital (MTD)
From April 2026, sole traders with income over £50,000 will need to keep digital records and submit quarterly updates to HMRC under Making Tax Digital for Income Tax (MTD ITSA). Those with income over £30,000 will follow from April 2027. This calculator helps you understand your current liability before the transition.
2025/26 Self-Employed Rates
- Personal Allowance
- £12,570
- Basic Rate (20%)
- £12,571–£50,270
- Higher Rate (40%)
- £50,271–£125,140
- Class 4 NI (main)
- 6%
- Class 4 NI (upper)
- 2%
- Class 2 NI
- Abolished
- Trading Allowance
- £1,000