UK self-employed & sole trader tax calculator 2026/27
This free self-employed tax calculator works out your take-home pay as a sole trader, freelancer or gig worker for the 2026/27 tax year. Enter your income and expenses and it shows your Income Tax, Class 2 and Class 4 National Insurance, and what you actually keep, with every figure based on official HMRC and GOV.UK rates and the full calculation shown.
How tax works for the self-employed
You are taxed on your taxable profit, your income minus the greater of your allowable expenses or the £1,000 trading allowance. Income Tax then uses the same bands as an employee, after the £12,570 Personal Allowance. The big difference is National Insurance:
| Deduction | 2026/27 rate |
|---|---|
| Income Tax (basic / higher / additional) | 20% / 40% / 45% |
| Class 4 NI (£12,570–£50,270) | 6% |
| Class 4 NI (over £50,270) | 2% |
| Class 2 NI (profit ≥ £7,105) | £0 to pay (treated as paid) |
Unlike an employee, no tax is taken at source, you pay through Self Assessment, so it's wise to set money aside as you earn. As a rough guide, putting aside 25–30% of your profit covers Income Tax and Class 4 NI for most basic-rate sole traders.
Employee instead of self-employed?
If you're on PAYE, use the UK salary calculator instead, or read our guide to how UK take-home pay works.
Frequently asked questions
- Is this self-employed tax calculator free?
- Yes. The sole trader and freelance tax calculator is free with no sign-up. Enter your self-employed income and expenses and it shows your take-home pay after Income Tax, Class 2 and Class 4 National Insurance for the 2026/27 tax year, based on official HMRC figures.
- How much tax does a sole trader pay in 2026/27?
- A sole trader pays Income Tax on taxable profit (income minus the greater of your expenses or the £1,000 trading allowance) at 20% basic, 40% higher and 45% additional rate, after the £12,570 Personal Allowance. On top of that, Class 4 National Insurance is 6% on profit between £12,570 and £50,270, then 2% above £50,270. Class 2 NI is £0 to pay once profit reaches the £7,105 Small Profits Threshold.
- What is the £1,000 trading allowance?
- The trading allowance lets you earn up to £1,000 of self-employed or casual income tax-free without registering for Self Assessment. If your expenses are less than £1,000 you can deduct the £1,000 allowance instead of your actual costs, whichever is higher. You cannot claim both.
- What is the difference between Class 2 and Class 4 National Insurance?
- Class 4 is the main self-employed NI, charged as a percentage of your profit (6% between £12,570 and £50,270, 2% above). Class 2 is a separate flat contribution that builds your State Pension, since April 2024 it is treated as paid with £0 to pay once your profit is at or above the £7,105 Small Profits Threshold.
- Do I need to register as self-employed?
- You must register for Self Assessment with HMRC if your self-employed income is more than £1,000 in a tax year. Below £1,000 the trading allowance usually covers you and you don't need to register. The deadline to register is 5 October after the end of the tax year in which you started.