Self-Employed Tax Calculator
Calculate your income tax, National Insurance and take-home profit as a self-employed sole trader or freelancer for the 2025/26 tax year.
Your Details
Your total business income before expenses
Allowable business expenses (travel, equipment, office costs, etc.)
e.g. employment income, rental income
Scotland has different income tax bands
Net Profit After Tax
£32,688.80
From a £50,000.00 turnover with £10,000.00 expenses
Turnover
£50,000.00
Expenses
£10,000.00
Taxable Profit
£40,000.00
Monthly Take-Home
£2,724.07
Effective Tax Rate
18.28%
Combined income tax and NI as a % of profit
Total Deductions
£7,311.20
Income Tax: £5,486.00 + NI: £1,825.20
Profit Breakdown
How your £40,000.00 taxable profit is split
Income Tax Breakdown
| Band | Taxable Amount | Rate | Tax |
|---|---|---|---|
| Basic Rate | £27,430.00 | 20% | £5,486.00 |
| Total | £5,486.00 | ||
National Insurance Breakdown
| Type | Contribution |
|---|---|
| Class 2 NI (£3.45/week x 52 weeks) | £179.40 |
| Class 4 NI: 6% on £12,570 - £50,270 | £1,645.80 |
| Total NI | £1,825.20 |
Payments on Account
You may need to make payments on account of £3,655.60 in January and £3,655.60 in July.
Payments on account are advance payments towards next year's tax bill, each equal to 50% of your previous year's total tax and NI liability.
This calculator is for informational purposes only and does not constitute financial advice. Tax calculations are based on current HMRC rates and may not reflect your exact circumstances. Always consult a qualified financial adviser.
Self-employed individuals must register with HMRC and file a Self Assessment tax return each year. The deadline for online returns is 31 January following the end of the tax year.
How is self-employed tax calculated?
When you work for yourself in the UK as a sole trader or freelancer, you pay tax on your profits — not your turnover. Your taxable profit is calculated by subtracting allowable business expenses from your total business income. This profit is then subject to income tax and National Insurance contributions (NICs), both of which are reported through the annual Self Assessment tax return.
Income tax is charged on your total income (self-employed profit plus any other income such as employment earnings or rental income) after deducting your Personal Allowance, which is currently frozen at £12,570.00 until April 2028. England, Wales and Northern Ireland use three main bands: Basic Rate (20%), Higher Rate (40%) and Additional Rate (45%). Scotland has its own multi-band system with rates from 19% to 48%. If your total income exceeds £100,000.00, your Personal Allowance is gradually withdrawn.
National Insurance for the self-employed comes in two classes. Class 2 NI is a flat weekly charge of £3.45 (payable if your profits exceed the small profits threshold of £6,725.00). Class 4 NI is a profit-based contribution: 6% on profits between £12,570.00 and £50,270.00, and 2% on profits above that. HMRC may also require you to make payments on account — two advance payments towards next year's tax bill, each equal to 50% of your current year's liability, due on 31 January and 31 July.
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