Precision Utility
Self-Employed Tax
Calculator
Class 2 NI
£3.45/wk
Tax Year
2025/26
Calculate your total self-employed tax bill for 2025/26. Enter your turnover and expenses to see Income Tax, Class 2 NI, Class 4 NI and student loan repayments on your trading profit. Pension contributions are deducted before tax is calculated. Results use current HMRC rates.
Your Self-Employment
Total Tax Payable
£0
Net Profit
£0
Monthly
£0
Trading Profit
£0
Effective Rate
0%
Income Tax
£0
Class 2 NI
£0
Class 4 NI
£0
Student Loan
£0
How the self-employed tax calculator works
Enter your annual turnover and allowable business expenses. The calculator subtracts your expenses from turnover to find your trading profit — this is the figure HMRC taxes you on.
If you make pension contributions, the calculator deducts them from your profit before calculating Income Tax. This reduces your tax bill because pension contributions attract tax relief at your marginal rate.
Income Tax is calculated using the same progressive bands as employed workers — Personal Allowance, basic rate (20%), higher rate (40%) and additional rate (45%). Your tax code determines your Personal Allowance, with 1257L giving the standard £12,570.
The calculator then adds Class 2 NI (£3.45 per week if profit exceeds £12,570) and Class 4 NI (6% on profits between £12,570 and £50,270, plus 2% above £50,270). Student loan repayments are calculated on profit above the relevant plan threshold.
What you need to know about self-employed tax 2025/26
If you work for yourself as a sole trader or freelancer, you pay tax through HMRC's Self Assessment system. Your tax bill is based on your trading profit — turnover minus allowable business expenses. Here are the key rates:
- Income Tax: Same bands as employees — 0% up to £12,570, 20% to £50,270, 40% to £125,140, 45% above
- Class 2 NI: £3.45 per week (£179.40/year) if profit exceeds £12,570
- Class 4 NI: 6% on £12,570–£50,270, then 2% above £50,270
Payment on Account: If your tax bill exceeds £1,000, HMRC requires advance payments. You pay two instalments (each 50% of last year's bill) on 31 January and 31 July, plus a balancing payment. In your first year you may pay up to 150% of your normal bill.
Filing deadlines: For 2025/26, file online by 31 January 2027 or on paper by 31 October 2026. All tax owed must be paid by 31 January 2027.
For employee NI calculations, use our National Insurance calculator. For the latest rates, see the official HMRC self-employed NI rates page on GOV.UK.
Frequently asked questions
How is self-employed tax calculated in the UK?
Self-employed tax is calculated on your trading profit (turnover minus allowable expenses). You pay Income Tax using the same bands as employees, plus Class 2 NI (£3.45/week if profit exceeds £12,570) and Class 4 NI (6% on profits between £12,570 and £50,270, plus 2% above £50,270).
What is Class 2 National Insurance?
Class 2 NI is a flat-rate contribution for the self-employed. For 2025/26, it costs £3.45 per week (£179.40 per year) and is payable if your profits exceed £12,570. It helps you qualify for the State Pension and certain benefits.
What is Class 4 National Insurance?
Class 4 NI is a profit-based contribution. For 2025/26, you pay 6% on profits between £12,570 and £50,270, and 2% on profits above £50,270. It is calculated and paid through your Self Assessment tax return.
What is Payment on Account?
If your tax bill exceeds £1,000, HMRC requires advance payments. Each Payment on Account is 50% of your previous year's tax bill, paid on 31 January and 31 July. A balancing payment follows on the next 31 January.
Can I deduct pension contributions from my self-employed income?
Yes. Personal pension contributions reduce your taxable profit for Income Tax purposes. This is one of the most tax-efficient ways for self-employed people to reduce their tax bill while building retirement savings.
When do I need to file my Self Assessment tax return?
For 2025/26 (ending 5 April 2026), the online filing deadline is 31 January 2027. The paper filing deadline is 31 October 2026. All tax owed must be paid by 31 January 2027.