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🇬🇧 UKHMRC 2026Self-employed

Self Assessment Calculator UK 2026

Estimate Income Tax and Class 2/4 National Insurance on sole-trader trading profits. Includes the £1,000 trading allowance and rUK / Scotland Income Tax bands.

By Sammy S. · Founder · AuthorUpdated for 2026

£7,131.80
£40k total tax+NI
£12,570
Personal Allowance
6%
Class 4 main rate
£1,000
Trading allowance

Calculate Self Assessment tax

Enter turnover and expenses (or claim the trading allowance). Results update live.

Your inputs

Turnover, expenses, region

£

Total trading income before expenses

Enter allowable business expenses below.

£
£

e.g. employment — affects Income Tax bands / PA taper only

Total tax + NI

rUK

£7,131.80

Effective 17.83% of trading profit £40,000

Trading profit£40,000.00
Income Tax£5,486.00
Class 4 NI£1,645.80
Class 2 cashTreated as paid
Take-home from trading£32,868.20
POA each (simplified 50%)£3,565.90
20% band£5,486.00

If payments on account apply, each instalment is usually half of last year’s Self Assessment bill (Income Tax + Class 4), due 31 January and 31 July. Planning estimate from this year’s figures: about £3,565.90 each. Confirm with HMRC.

Class 2 treated as paid (profits ≥ £7,105).

Sole traders & freelancers
Estimate tax and Class 4 before Self Assessment deadlines and set money aside.
Side-hustle earners
Model turnover with the £1,000 trading allowance when expenses are small.
Advisers (quick check)
Band-level sanity check against published HMRC rates — not a filing substitute.

UK Self Assessment for sole traders is estimated for tax year 2026/27: trading profit after expenses or the £1,000 trading allowance, then Income Tax (rUK or Scotland) plus Class 2/4 National Insurance. Income tax uses the same HMRC bands as our UK salary engine; NI uses the self-employed Class 2/4 engine.

Worked example — £40,000

Trading profit£40,000.00
Income Tax£5,486.00
Class 4 NI£1,645.80
Total tax + NI£7,131.80
Take-home from trading£32,868.20

£40,000 profits → Income Tax £5,486.00 + NI £1,645.80 = £7,131.80

Formulas

  • Trading profit
    Profit = Turnover − expenses OR Turnover − min(£1,000, Turnover) if claiming the trading allowance
  • Income Tax
    Tax on (trading profit + other income) after Personal Allowance (standard £12,570, taper above £100,000)
  • Class 4 NI
    6% between LPL and UPL; 2% above UPL — on trading profit only
  • Payments on account (simplified)
    Each instalment ≈ 50% of (Income Tax + Class 4) for planning — confirm HMRC rules
  1. Work out taxable trading profit — Use allowable expenses, or claim the £1,000 trading allowance instead (not both).
  2. Apply Income Tax bands — Other taxable income is added for banding and PA taper only.
  3. Add Class 2/4 NI — Same self-employed NI rules as the National Insurance calculator.
Personal Allowance£12,570gov.uk 2026/27
Trading allowance£1,000gov.uk trading allowance
Basic-rate band (rUK)20% to £50,270gov.uk Income Tax rates
Class 4 main / additional6% / 2%Self-employed NI

Key takeaways — Self Assessment

  • Self Assessment for sole traders = Income Tax on profits + Class 2/4 NI (2026/27).
  • £40,000 profits (rUK, no expenses) → about £7,131.80 total (£5,486.00 tax + £1,645.80 Class 4).
  • Trading allowance of up to £1,000 can replace actual expenses when expenses are low.
  • Class 4 starts above £12,570 at 6% (then 2%).
  • Use Scotland mode for Revenue Scotland Income Tax bands.

Profit, Income Tax, and Class 4

Trading profit

Turnover − expenses or Turnover − £1,000 allowance

You cannot usually claim both the allowance and actual expenses

Income Tax

After £12,570 PA — 20% / 40% / 45% (rUK)

£40,000 profits → £5,486.00 Income Tax

Class 4 NI

6% then 2% on trading profit

£40,000 → £1,645.80 Class 4

What is Self Assessment for the self-employed?

Self Assessment is how HMRC collects Income Tax (and usually Class 2/4 National Insurance) from sole traders and others with income not fully taxed under PAYE.

For 2026/27, you typically report trading income after the end of the tax year, pay online, and may also make payments on account toward the next year.

Trading profit, expenses, and the £1,000 allowance

Taxable trading profit is turnover minus allowable expenses — or, if you claim the trading allowance, minus up to £1,000 instead of expenses.

If expenses are below £1,000, the trading allowance often gives a lower taxable profit. If expenses are higher, claim actual expenses.

Income Tax and Class 4 together

Example: £40,000 profit (no expenses, rUK) → Income Tax about £5,486.00 and Class 4 about £1,645.80, total £7,131.80.

At £60,000, higher-rate Income Tax applies — this model estimates £11,432.00 tax plus £2,456.60 Class 4 (total £13,888.60).

Thresholds and rates

Tax year2026/27
Personal Allowance£12,570
Trading allowance£1,000
Basic rate (rUK)20% to £50,270
Higher rate (rUK)40% to £125,140
Class 4 LPL£12,570
Class 4 rates6% / 2%

Tax by profit level (rUK, £0 expenses)

ProfitIncome TaxClass 4TotalTake-home
£20,000£1,486.00£445.80£1,931.80£18,068.20
£30,000£3,486.00£1,045.80£4,531.80£25,468.20
£40,000£5,486.00£1,645.80£7,131.80£32,868.20
£50,000£7,486.00£2,245.80£9,731.80£40,268.20
£60,000£11,432.00£2,456.60£13,888.60£46,111.40
£80,000£19,432.00£2,856.60£22,288.60£57,711.40
£100,000£27,432.00£3,256.60£30,688.60£69,311.40

Common mistakes

Claiming the trading allowance and full expenses
You generally choose one approach for the trade — allowance or actual expenses — not both.
Forgetting Class 4 when budgeting take-home
Self-employed take-home is after Income Tax and Class 4 (and any Class 2 cash if relevant).
Ignoring payments on account
Many self-employed people pay 31 January and 31 July instalments based on the prior year’s bill — plan cash flow early.
Using an employee NI calculator on profits
Employees pay Class 1 on earnings; sole traders pay Class 4 on profits — different rates and bases.

Who this helps

Sole traders & freelancers
Estimate tax and Class 4 before Self Assessment deadlines and set money aside.
Side-hustle earners
Model turnover with the £1,000 trading allowance when expenses are small.
Advisers (quick check)
Band-level sanity check against published HMRC rates — not a filing substitute.

Checklist

  • Register for Self Assessment if required and note the 31 January filing/payment deadline.
  • Choose expenses vs the £1,000 trading allowance.
  • Budget for Income Tax and Class 4 on profits.
  • Plan payments on account (often 31 Jan and 31 Jul).
  • Keep invoices and expense records.
  • Use the NI-only tool if you only need Class 2/4.

Popular profit levels

Self Assessment calculator FAQ

In this rUK model with no expenses: Income Tax about £5,486.00 plus Class 4 about £1,645.80 (total £7,131.80). Actual bills depend on expenses, other income, and Scotland bands.

A tax-free allowance of up to £1,000 a year on trading income. You can claim it instead of deducting actual expenses (gov.uk).

Yes — usually Class 4 on profits above £12,570, and Class 2 is treated as paid when profits reach the small profits threshold. See the National Insurance calculator for NI-only detail.

Online returns and balancing payments are generally due by 31 January following the tax year. Payments on account may also be due on 31 January and 31 July.

Yes. Scotland has its own Income Tax bands and rates. Toggle Scotland in the calculator; Class 4 NI rules remain UK-wide.

No. The salary tool models PAYE employment (Income Tax + Class 1). This tool models Self Assessment on trading profits (Income Tax + Class 2/4).

No. Figures use published gov.uk rates for modelling only. Confirm with an accountant or HMRC.

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