Self-Employed Tax Calculator

Written and reviewed by Waqas Sagar, Chartered Accountant
ICAEW & ACCA RegulatedAccotax
Last updated: May 2026

Calculate your tax as a sole trader for 2024/25. See Income Tax, Class 2 and Class 4 National Insurance, and take-home pay.

HMRC Verified 2026/27
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Business Details
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Tax Summary

Take-Home Pay

£31,865.90

Effective tax rate: 20.3%

Turnover£50,000.00
Expenses-£10,000.00
Taxable Profit£40,000.00
Income Tax-£5,486.00
Class 2 NI-£179.40
Class 4 NI-£2,468.70
Total Tax£8,134.10

Yearly

£31,865.90

Monthly

£2,655.49

Weekly

£612.81

Calculation Methodology

This calculator uses official HMRC PAYE algorithms for 2026/27. Rates sourced directly from gov.uk. Reviewed by a qualified ICAEW-regulated accountant.

Official Sources

Important: Results are estimates based on standard HMRC rules. Your actual tax may differ based on your specific tax code, benefits, or HMRC adjustments. Always verify with your employer or a qualified accountant.

Frequently Asked Questions

How is self-employed tax calculated?

Self-employed individuals pay Income Tax on their profits (turnover minus allowable expenses) and Class 2 and Class 4 National Insurance contributions. The tax is calculated based on your total profit for the tax year.

What is the difference between Class 2 and Class 4 NI?

Class 2 NI is a flat weekly rate (£3.45 in 2024/25) payable if your profits exceed the small profits threshold. Class 4 NI is calculated as a percentage of your profits - 9% on profits between £12,570 and £50,270, and 2% above that.

What expenses can I deduct as self-employed?

You can deduct legitimate business expenses including office costs, travel, stock, marketing, professional fees, and a proportion of household costs if you work from home. Keep records of all expenses for at least 5 years.

When do I need to register as self-employed?

You must register with HMRC by 5 October in your business's second tax year. If you don't register in time, you may have to pay a penalty.

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