How much tax will I pay if I'm self-employed?
You pay Income Tax and Class 4 National Insurance on your profit, which is your business income minus your allowable expenses. This calculator works it out for 2026/27, including for sole traders.
Profit = business income − allowable expenses
Say you earn £45,000 and have £8,000 of expenses. Your profit is £37,000. You'd pay £4,886 in Income Tax and £1,466 in National Insurance, a total bill of £6,352. That leaves £30,648 a year, or £2,554 a month.
| Profit | Income Tax | Class 4 NI | Take-home | Set aside a month |
|---|---|---|---|---|
| £15,000 | £486 | £146 | £14,368 | £53 |
| £20,000 | £1,486 | £446 | £18,068 | £161 |
| £30,000 | £3,486 | £1,046 | £25,468 | £378 |
| £40,000 | £5,486 | £1,646 | £32,868 | £594 |
| £50,000 | £7,486 | £2,246 | £40,268 | £811 |
| £60,000 | £11,432 | £2,457 | £46,111 | £1,157 |
| £80,000 | £19,432 | £2,857 | £57,711 | £1,857 |
Self-employed National Insurance
You pay Class 4 National Insurance through Self Assessment: 6% on profits between £12,570 and £50,270, then 2% on profits above that.
If your profits are £7,105 or more, Class 2 is treated as paid, so you get the National Insurance record without paying it. Below that, you don't have to pay anything, but you can choose voluntary Class 2 at £3.65 a week.
How much should I save for tax when self-employed?
Nobody takes tax out of your income as you go, so it helps to set money aside each month. Enter your figures and the calculator shows the monthly amount.
Your first bill can be a shock because of payments on account. These are advance payments towards next year's bill, each usually half of the last one. You normally make them if your bill is £1,000 or more, and they're due by 31 January and 31 July. They include Class 4 National Insurance, but not student loans.
So on a £6,352 first bill, you'd pay £9,528 by 31 January, then £3,176 by 31 July. The When you pay tab shows this for your figures.
Employed and self-employed tax
If you have a job as well, your job's pay uses up your personal allowance first. That usually means your profit is taxed from the first pound. Choose Also employed and enter your salary to see the effect. For a job on its own, use our salary after tax calculator.
Student loan repayments are based on your combined income for the whole year, so your bill includes any amount your job hasn't already collected. There's also a yearly limit on National Insurance when you have both, so high earners could pay less than the figure here.
Self-employed tax questions
How much can you earn self-employed before paying tax?
You don't pay Income Tax or Class 4 National Insurance on profits up to £12,570, if you have no other income. That's different from reporting it: if your trading income is over £1,000, you'll usually need to tell HMRC.
Is this a sole trader tax calculator?
Yes. A sole trader is a self-employed person who runs their own business, so the same tax rules apply. It doesn't cover limited companies or partnerships.
What is the trading allowance?
You can deduct £1,000 from your trading income instead of claiming your actual expenses. It's only worth using if your expenses are lower than that.
Are pension contributions tax deductible for the self-employed?
You get tax relief on them. Your provider adds 20%, and higher-rate payers can claim more through their tax return. Enter what you pay each month and the calculator includes this.
Does this work for Scotland?
Yes. Choose Scotland to use Scottish Income Tax rates. National Insurance is the same across the UK.
How are student loans repaid when self-employed?
HMRC works out your repayment from your tax return, and you pay it at the same time as your tax.
Sources
Checked on 6 November 2026 against the 2026/27 tax year.