Kalkulo

Self-employed tax calculator

Work out Income Tax and Class 4 National Insurance on sole trader profits, with Scottish rates, the Personal Allowance taper and your take-home.

In the 2026/27 tax year, self-employed people in the UK pay Class 4 National Insurance of 6% on profits between £12,570 and £50,270 and 2% above; Class 2 is treated as paid from £7,105 of profits, so there is nothing to pay. Income Tax is 20%, 40% and 45% in England, Wales and Northern Ireland, and 19% to 48% in Scotland, after a £12,570 Personal Allowance. Sources: Social Security Contributions and Benefits Act 1992, s.15, s.11, Finance Act 2026, s.2, gov.uk (Scotland).

Income minus allowable expenses and any losses brought forward. You can deduct the £1,000 trading allowance instead of your expenses if that suits you better.

“You pay Scottish Income Tax if you live in Scotland.” (gov.uk). Two homes, moving or other special cases: Scotland Act 1998, s.80D.

If so, no Class 4 is due for 2026/27 (Contributions Regulations 2001, reg 91). Reaching it during the tax year does not remove it.

A pension, rent, savings interest or dividends above your allowances, for example.

A job with wages paid through PAYE, even part-time.

Answer the questions above to see an estimate (still to answer: where you pay Income Tax, State Pension age, other taxable income, employment).

Rates and thresholds, 2026/27

RuleValueSource
Class 46% on profits from £12,570 to £50,270, 2% aboveSSCBA 1992 s.15(3), (3ZA); profits under Sch. 2
Class 2Treated as paid from £7,105 of profits; voluntary £3.65 a week belowSSCBA 1992 s.11
Over State Pension ageNo Class 4 if over State Pension age at the start of the tax yearContributions Regulations 2001 reg 91(a)
Personal Allowance£12,570, reduced by £1 for every £2 above £100,000ITA 2007 s.35
England, Wales and Northern Ireland20% up to £37,700 of taxable income, 40% up to £125,140, 45% aboveFinance Act 2026 s.2; ITA 2007 s.10
Scotland19% up to £3,967, 20% up to £16,956, 21% up to £31,092, 42% up to £62,430, 45% up to £125,140, 48% above £125,140 (taxable income)Rates set by the Scottish Parliament; 2026-27 bands as applied by HMRC: Scottish Rate Resolution 2026-27 motion, Scottish Budget 2026-27, HMRC, gov.uk

Last verified 27 September 2026. Rest-of-UK bands: 20% up to £37,700, 40% up to £125,140, 45% above £125,140 of taxable income. National Insurance figures for later years are only announced, not law yet, so none is shown.

What this calculator does not cover

  • Wages in the same year: the annual maximum on Class 4 (reg 100).
  • Other income: pensions, rent, savings, dividends — they change your bands and allowance.
  • Non-UK residents, people under 16, Special Class 4 (examiners and similar), share fishermen and volunteer development workers.
  • Cash basis or accruals, basis periods, capital allowances and how your profit is worked out.
  • Payments on account and when the tax is due.
  • Student loan repayments, pension contributions, the High Income Child Benefit Charge and Marriage Allowance.
  • Making Tax Digital for Income Tax: it changes how you report, not what you owe.

Below £7,105 of profits, see whether voluntary National Insurance is worth paying. For a job, use the take-home pay calculator; for a limited company, the salary vs dividends calculator; for your pension, the State Pension calculator.

About this tool

Why use this tool

As a sole trader you pay Income Tax and National Insurance on your profits through Self Assessment, not through payroll, so nobody works out your bill for you as you go. Knowing it in advance helps you set money aside, price your work and compare self-employment with a job or a limited company. This calculator applies the 2026/27 rules to your trading profits, band by band, for the rest of the UK and for Scotland.

How it works

Class 4 National Insurance is 6% of profits between £12,570 and £50,270 and 2% above (Social Security Contributions and Benefits Act 1992, s.15). Class 2 is no longer paid by anyone with profits of £7,105 or more: it is treated as paid, which keeps the year on your National Insurance record (s.11). Income Tax starts after a £12,570 Personal Allowance, which falls by £1 for every £2 of income above £100,000 (Income Tax Act 2007, s.35); in England, Wales and Northern Ireland the rates are 20%, 40% and 45% (Finance Act 2026, s.2). In Scotland the rates are set by the Scottish Parliament: for 2026-27, HMRC applies 19%, 20%, 21%, 42%, 45% and 48% (gov.uk).

Real example

With profits of £30,000 and no other income, Class 4 is 6% of £17,430: £1,045.80. Income Tax is 20% of the £17,430 above the allowance, £3,486.00, in England, Wales or Northern Ireland, leaving about £25,468 for the year. In Scotland the same profits pay £3,451.07 of Income Tax (19% on the first £3,967 of taxable income, then 20% and 21%), leaving about £25,503.

Practical tips

Set aside part of every payment you receive, as nothing is deducted at source; HMRC may also ask for payments on account towards the next year. Keep records of your expenses, or use the £1,000 trading allowance instead if it is higher. If your profits are below £7,105, you can choose to pay voluntary Class 2 to protect your State Pension. If you reached State Pension age before 6 April 2026, no Class 4 is due for the year.

Disclaimer

This is an estimate from the profits you enter, under the rules checked on 27 September 2026, for the 2026/27 tax year. It assumes your profits are your only taxable income and that you get the standard Personal Allowance; with a job or other income it shows National Insurance only. It does not cover the Class 4 annual maximum, student loans, pension contributions, the High Income Child Benefit Charge or payments on account. Check your figures with HMRC’s Self Assessment tax calculator.

Frequently asked questions

How much National Insurance do self-employed people pay?⌄
In 2026/27, Class 4 National Insurance is 6% of profits between £12,570 and £50,270 and 2% of profits above £50,270. On £30,000 of profits that is £1,045.80. Class 2 is treated as paid once profits reach £7,105, so there is nothing to pay; below that, nothing is due, but you can choose to pay voluntary Class 2 at £3.65 a week.Source: legislation.gov.uk — Social Security Contributions and Benefits Act 1992, section 15, gov.uk — Self-employed National Insurance rates
Do I still have to pay Class 2 National Insurance?⌄
No. Since April 2024, Class 2 is no longer paid by self-employed people with profits of £7,105 or more (2026/27): it is treated as paid, so the year still counts towards the State Pension. With lower profits you pay nothing, but you can choose to pay voluntary Class 2 to fill the year.Source: legislation.gov.uk — Social Security Contributions and Benefits Act 1992, section 11
What Income Tax does a sole trader pay?⌄
The same Income Tax as anyone else on the same income. In England, Wales and Northern Ireland it is 20% on the first £37,700 of taxable income, 40% up to £125,140 and 45% above, after a £12,570 Personal Allowance. The allowance falls by £1 for every £2 of income above £100,000.Source: legislation.gov.uk — Finance Act 2026, section 2, legislation.gov.uk — Income Tax Act 2007, section 35
Are the rates different in Scotland?⌄
Income Tax, yes: the Scottish Parliament sets its own rates. For 2026-27, HMRC applies 19%, 20%, 21%, 42%, 45% and 48% to Scottish taxpayers, on bands of taxable income up to £3,967, £16,956, £31,092, £62,430, £125,140 and above. National Insurance is the same across the UK. You pay Scottish Income Tax if you live in Scotland.Source: gov.uk — Income Tax in Scotland, gov.scot — Scottish Rate Resolution 2026 to 2027: draft motion
Do I pay Class 4 after State Pension age?⌄
Not if you were already over State Pension age at the start of the tax year (6 April). If you reach it during the year, Class 4 is still due for that whole year, and stops from the next tax year. Income Tax still applies either way.Source: legislation.gov.uk — Social Security (Contributions) Regulations 2001, regulation 91
I am employed and self-employed. How much Class 4 do I pay?⌄
Class 4 is worked out on your profits in the usual way, but when you also pay Class 1 on wages in the same year, it is capped by an annual maximum that depends on both. This calculator shows Class 4 before that cap and does not calculate Income Tax in that case, because your wages change your bands. HMRC applies the cap.Source: legislation.gov.uk — Social Security (Contributions) Regulations 2001, regulation 100

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