Self Employed Tax Calculator (2026/2027)

Calculate your UK Income Tax, National Insurance, and take-home pay for the 2026/27 tax year in seconds using our free self-employed tax calculator.

Whether you need a quick self employment tax calculator or a long-term expense tracker, this tool calculates your exact tax liability and shows you how much money to set aside each month.

If you are strictly on a traditional payroll, check our Salary After Tax Calculator instead.

How Our Self-Employed Tax Calculator Works

Our tool uses official HMRC tax bands and National Insurance thresholds to calculate your net earnings in three simple steps:

1. The Inputs You Provide

Employed and Self-Employed Tax Calculator for Side Hustles

If you run a side hustle alongside a regular job, our calculator functions as an employed and self-employed tax calculator by letting you input your employment (PAYE) salary alongside your business turnover.

Annual Self-Employed Turnover: Your total business revenue before expenses. (Selling on marketplaces? Try our dedicated calculators for Etsy, eBay, Uber, or Bolt earnings).
Allowable Expenses: Business costs (e.g., travel, home office costs, equipment) you can deduct to find your Net Profit. Designed as a dedicated freelance tax calculator UK workers can rely on, our tool automatically factors in all allowable business expenses.
PAYE Salary (Optional): Include employment income from a job or combine streams using our Multiple Income Tax Calculator to calculate combined marginal rates accurately.

2. We Calculate Your Earnings

Once you enter your figures, our calculator processes your net profit through current UK tax rules:

Personal Allowance: The first £12,570 of earnings is completely tax-free (tapered down by £1 for every £2 earned over £100,000)
Income Tax: Profit above £12,570 is calculated across official tax brackets (20% Basic, 40% Higher, 45% Additional). For standard PAYE rates, view our Income Tax Calculator.
Class 4 National Insurance: Calculated at 6% on profits between £12,570 and £50,270, and 2% on profits exceeding £50,270.
Class 2 National Insurance: Automatically factors in voluntary rules for earnings under £6,725 or exemption status above the Small Profits Threshold.

Working in construction? Subcontractors under the Construction Industry Scheme should use our CIS Tax Calculator to factor in CIS deductions.

3. Understanding Your Outputs

Your calculation summary displays four key metrics:

Total Annual Tax Bill: Combined Income Tax and Class 4 NI owed to HMRC.
Effective Tax Rate: The true percentage of your total profit going toward tax.
Net Take-Home Pay: Your annual earnings after all deductions, converted into Monthly and Weekly cash flow.
Recommended Tax Set-Aside: The exact percentage of every invoice you should put into a dedicated savings account.

UK Self Assessment Tax Rates & Thresholds (2026/27)

To help you understand where your money goes, here is a breakdown of current HMRC tax brackets and National Insurance rates for sole traders:

National Insurance Contributions (NICs)

Class 4 NI: 6% on self-employed profits between £12,570 and £50,270; 2% on profits above £50,270.
Class 2 NI: Mandatory Class 2 payments are abolished for profits above £6,725. You receive treated-as-paid National Insurance credits automatically to protect your State Pension entitlement.

What Expenses Can You Deduct to Lower Your Tax Bill?

You only pay tax on your net business profit, not total revenue. Deducting allowable business expenses reduces your taxable income:

Office & Premises: Stationary, phone bills, broadband, software subscriptions, and a percentage of home utility bills (or HMRC simplified flat-rate home office allowances).
Travel & Vehicles: Business mileage (45p per mile for the first 10,000 miles), parking, train fares, and accommodation.
Professional Fees: Accountancy costs, legal fees, business insurance, and professional subscriptions.
Marketing & Stock: Website hosting, advertising costs, office equipment, and raw materials.

Trading Allowance Note: If your total business expenses are under £1,000 per year, you can claim the flat £1,000 Trading Allowance instead of actual expenses. You cannot claim both.

Keep More of What You Earn with the Pie Tax App

Calculating expenses by hand or saving shoeboxes of receipts is a hassle, and missing valid deductions means paying more tax than you owe.

With the Pie Tax App, managing your self-employed finances takes zero effort:

Automated Expense Tracking: Connect your bank account via secure Open Banking to automatically scan and categorize allowable business expenses in real time.
Live Tax Estimates: See exactly what you owe to HMRC updated daily, so there are never any surprises come January.
Direct HMRC Filing: Submit your Self Assessment return straight to HMRC directly from your phone in just a few clicks.

Frequently Asked Questions

How much tax should I set aside as a sole trader?

As a rule of thumb, self-employed individuals earning under £50,000 should set aside 25% to 30% of their net income for tax and National Insurance. Higher earners should set aside 35% to 40%.

What if I have a PAYE job and a self-employed side hustle?

Your £12,570 Personal Allowance is usually used up by your main employer. This means your self-employed profits will likely be taxed at your marginal rate (20% or 40%) starting from your first pound of self-employed profit above the £1,000 Trading Allowance.

When are my self-employed taxes due?

Self Assessment payments are due by 31 January following the end of the tax year. If your tax bill is over £1,000, HMRC will also require Payments on Account, two advance payments toward the next year's bill due on 31 Januaryand 31 July.

How does the Pie Tax App make this easier?

Using an accurate self assessment tax calculator helps sole traders avoid unexpected bills when HMRC deadlines approach. While this tax calculator provides an estimate, the free Pie Tax App connects directly to your bank account via Open Banking. It automatically categorizes allowable expenses in real time, calculates live tax obligations, and lets you file your Self Assessment return directly to HMRC.