2025/26 · Sole trader · Income tax + Class 4 NI + allowable expenses
Your Business
£
£
%
Summary
Net Profit£60,000.00
Income Tax£10,232.00
Class 4 NI£2,456.60
Effective Rate26.1%
Monthly Net£3,692.62
ℹ️ Class 4 NI 2025/26: 6% on profits £12,570–£50,270 · 2% above. Class 2 NI was abolished from April 2024.
Gross Revenue
£80,000.00
per year
£6,666.67 per month
Net Income After Tax
£44,311.40
per year
£3,692.62 per month
Net Profit
£60,000.00
Monthly Net
£3,692.62
Weekly Net
£852.14
Effective Rate
26.1%
Item
% of Total
Annually (£)
Monthly (£)
Weekly (£)
Daily (£)
Gross Revenue
100%
80,000.00
6,666.67
1,538.46
307.69
Allowable Expenses
25%
20,000.00
1,666.67
384.62
76.92
Net Profit (Taxable)
75%
60,000.00
5,000.00
1,153.85
230.77
Pension
4%
3,000.00
250.00
57.69
11.54
Income Tax
13%
10,232.00
852.67
196.77
39.35
Class 4 NI
3%
2,456.60
204.72
47.24
9.45
Net Income After Tax
55%
44,311.40
3,692.62
852.14
170.43
Smart Tips
⚠️
Income above £50,000 triggers the High Income Child Benefit Charge (HICBC) if you or your partner claim Child Benefit. You repay 1% of the benefit for every £200 over £50,000.
💡
You're in the 40% Higher Rate tax band. Consider salary sacrifice pension contributions to reduce your taxable income — every £1 into pension saves 40p in tax plus 8p in NI.
Self-Employed Tax Calculator UK — Income Tax and National Insurance for Sole Traders
If you are self-employed in the UK — whether as a sole trader, freelancer, or contractor — your tax obligations differ significantly from those of an employee. Rather than having tax deducted automatically through PAYE, you are responsible for calculating and paying your own Income Tax and National Insurance through Self Assessment. This self-employed tax calculator shows you how much Income Tax and Class 4 National Insurance you owe on your self-employed profits for 2025/26, along with your net take-home pay after all deductions.
Self-Employed National Insurance 2025/26 — Class 2 and Class 4 NI Explained
Self-employed individuals pay two types of National Insurance: Class 2 and Class 4. From April 2024, Class 2 NI was effectively abolished for most self-employed people — those with profits above the Small Profits Threshold (£12,570) now get NI credits without paying Class 2. Class 4 NI remains and is calculated as a percentage of your taxable profits. The rates for 2025/26 are shown below.
NI Class
Applies To
Profit Range
Rate
Class 2
Profits above Small Profits Threshold
Above £12,570
£0 (credits only from Apr 2024)
Class 4
Main rate on trading profits
£12,570 – £50,270
6%
Class 4
Upper rate on trading profits
Above £50,270
2%
Note: Class 4 NI is calculated on your taxable profits (gross income minus allowable business expenses), not your gross turnover. Maximising allowable expense claims reduces both your Income Tax and Class 4 NI liability.
Sole Trader Tax Calculator — Take-Home Pay at Common Profit Levels
The table below shows approximate Income Tax and Class 4 NI for common self-employed profit levels in England/Wales, 2025/26. These figures assume no other income, no pension contributions, and no student loan.
Taxable Profit
Income Tax
Class 4 NI
Total Tax
Net Take-Home
£20,000
£1,486
£447
£1,933
£18,067
£30,000
£3,486
£1,047
£4,533
£25,467
£40,000
£5,486
£1,647
£7,133
£32,867
£50,000
£7,486
£2,247
£9,733
£40,267
£60,000
£11,432
£2,447
£13,879
£46,121
£80,000
£19,432
£2,847
£22,279
£57,721
£100,000
£27,432
£3,247
£30,679
£69,321
Self Assessment Calculator UK — Key Dates and Payment on Account
Self-employed individuals must file a Self Assessment tax return by 31 January following the end of the tax year (5 April). The tax due is also payable by 31 January. If your tax bill exceeds £1,000, HMRC requires you to make Payments on Account — advance payments towards the following year's tax bill. Each payment is 50% of the previous year's tax bill, due on 31 January and 31 July. This can create a significant cash flow challenge in the first year of self-employment, when you may need to pay 150% of your first year's tax bill by the following 31 January (the full year's tax plus the first payment on account). Planning for this is essential — consider setting aside 25–30% of your income throughout the year to cover your tax liability.
Freelancer Tax Calculator UK — Allowable Business Expenses
One of the key advantages of self-employment is the ability to deduct allowable business expenses from your income before calculating tax. Common allowable expenses include: office costs (stationery, phone, internet), travel and vehicle costs (mileage at HMRC approved rates), professional fees (accountant, solicitor), marketing and advertising, training directly related to your business, and a proportion of home costs if you work from home. The trading allowance of £1,000 per year allows very small traders to receive up to £1,000 of income tax-free without needing to track expenses. For higher earners, claiming all legitimate expenses is essential to minimising your tax bill.
Frequently Asked Questions
How much tax do I pay as a self-employed person in the UK?
Self-employed individuals pay Income Tax on profits above the Personal Allowance (£12,570 in 2025/26) at 20%, 40%, or 45% depending on the level of profit. They also pay Class 4 National Insurance at 6% on profits between £12,570 and £50,270, and 2% above £50,270. For example, on £40,000 of taxable profit, you would pay approximately £5,486 in Income Tax and £1,647 in Class 4 NI — a total of £7,133, leaving a net take-home of approximately £32,867.
Do I need to register for Self Assessment if I am self-employed?
Yes. If your self-employment income exceeds £1,000 in a tax year (the trading allowance), you must register for Self Assessment with HMRC. You should register by 5 October following the end of the tax year in which you started self-employment. Failure to register on time can result in penalties. You can register online through HMRC's website or by calling the Self Assessment helpline.
What is the difference between Class 2 and Class 4 National Insurance for the self-employed?
From April 2024, Class 2 NI was effectively abolished for self-employed people with profits above the Small Profits Threshold (£12,570). Those with profits above this level now receive NI credits automatically without paying Class 2. Class 4 NI remains and is calculated at 6% on profits between £12,570 and £50,270, and 2% above £50,270. Those with profits below £12,570 can choose to pay voluntary Class 2 NI (£3.45/week) to protect their State Pension entitlement.
Can I reduce my self-employment tax by making pension contributions?
Yes. Pension contributions made by a self-employed person reduce their taxable income for Income Tax purposes, but not for Class 4 NI purposes (unlike salary sacrifice for employees). A Basic Rate taxpayer saves 20p in Income Tax for every £1 contributed to a pension. A Higher Rate taxpayer saves 40p. You can also claim higher rate tax relief through your Self Assessment return if your pension provider only claims basic rate relief.