Self-Employed Tax Calculator UK 2025/26
Use this self-employed tax calculator as the main UK hub for sole traders, freelancers and small business owners who want to estimate 2025/26 Income Tax and Class 4 National Insurance on trading profit. Scottish taxpayer? Switch region above.
Region: England, Wales & Northern Ireland | Scotland
Last verified against GOV.UK rates: 25 May 2026.
Methodology: this calculator uses the main Income Tax rates for England, Wales and Northern Ireland, the standard Personal Allowance, and self-employed Class 4 National Insurance rates. It does not cover Scottish Income Tax bands, student loans, pension contributions, VAT, benefits, tailored reliefs, or personal tax advice.
Scottish taxpayer? Use the Scottish self-employed tax calculator for the correct starter, basic, intermediate, higher, advanced and top rate bands.
Calculated estimate
Tax Calculation Results
This estimate used Scottish income tax bands because Scotland is selected.
- Estimated take-home profit
- ~£
- Additional Income Tax
- ~£
- National Insurance
- ~£
| Main Income: | £ |
| Side Hustle Income: | £ |
| Side Hustle Expenses: | £ |
| Side Hustle Profit: | £ |
| Estimated Additional Income Tax: | ~£ |
| Estimated National Insurance Contributions: | ~£ |
| Estimated Total Additional Tax (Income Tax + NI): | ~£ |
| Estimated Effective Tax Rate (Income Tax + NI): | % |
Based on this gross side hustle income, Making Tax Digital may apply from . Check HMRC guidance because digital records and quarterly updates may be required.
Self-employed, sole trader and small business tax calculator hub
Self-employed income is taxed on profit (income minus allowable expenses) through Self Assessment. This hub is the broad self-employed tax calculator for sole traders, freelancers, consultants, creators, marketplace sellers and small business owners trading as individuals rather than through a limited company.
Enter your gross self-employed or small business income, the allowable expenses or £1,000 trading allowance you want to model, and any PAYE salary. The calculator stacks trading profit on top of other income, then estimates the extra Income Tax and Class 4 National Insurance due. It runs entirely in your browser, so none of your figures are sent to a server or analytics.
Use it as a self-employed income tax calculator for the current tax year, a self-employed NI calculator before a new contract, or a small business tax calculator when your business is still taxed as sole-trader/self-employed profit. Scottish taxpayers should use the Scotland version because Scottish Income Tax bands differ from the rest of the UK.
These figures apply to self-employed and sole-trader profit in England, Wales and Northern Ireland for 2025/26. The Personal Allowance is £12,570, the basic rate is 20% to £50,270, the higher rate is 40% to £125,140, and the additional rate is 45% above that. Scottish taxpayers have different bands — use the Scotland calculator linked from the region toggle. Limited companies pay Corporation Tax instead of Self Assessment, so this calculator is for unincorporated small businesses only. If you live in Scotland, use the self employed tax calculator Scotland page because Scottish Income Tax bands and higher rates differ from England, Wales and Northern Ireland.
- Use Side Hustle Income for gross income before expenses or allowances.
- Use Side Hustle Expenses for allowable expenses, or for the deduction you want to model, such as the trading allowance.
- Use Annual Salary for your PAYE salary before tax.
Small business tax calculator for sole traders
A small business tax calculator means different things depending on legal structure. This page covers the self-employed route: sole traders and unincorporated small business owners who report business profit on a Self Assessment tax return.
For a small business run as a sole trader, enter gross business income before expenses, then deduct allowable costs such as stock, platform fees, software, insurance, mileage, home-office costs and professional fees. The calculator estimates the Income Tax and Class 4 National Insurance on the resulting profit, after stacking it on top of any PAYE salary.
If you trade through a limited company, this is not a corporation tax or dividend calculator. Use this page for the sole-trader/self-employed part of the cluster, then use the dedicated sole trader tax calculator for sole-trader wording or the freelance tax calculator for client/project income examples.
Trading Allowance vs Actual Expenses
The trading allowance can exempt up to £1,000 of gross trading income. If your gross trading income is £1,000 or less, you may not need to tell HMRC, although some circumstances still require a tax return.
If gross trading income is more than £1,000, you can usually choose between deducting the £1,000 trading allowance or deducting actual allowable expenses. You cannot claim both for the same trade.
Self Assessment registration and deadlines
If you cross the £1,000 trading allowance you normally need to register for Self Assessment by 5 October after the tax year ends, and file online by 31 January after the tax year. See the main Self Assessment registration and deadlines section for the 2025/26 dates and payments-on-account rules.
Freelancer, sole trader, small business or self-employed?
These terms often overlap in everyday use, but they do not always mean the same thing for UK tax. Use the broad self-employed hub when you want a general calculator, then switch to the more specific page if it matches how you earn money.
| Term | Plain-English meaning | When it overlaps | Best page to use |
|---|---|---|---|
| Self-employed | The broad HMRC status for someone who works for themselves rather than as an employee. It can include sole traders, freelancers, partners and some small-business owners. | Use this term when you want the widest UK tax view. Your taxable profit is added to PAYE salary, then Income Tax and Class 4 National Insurance are estimated through Self Assessment. | Use the self-employed tax calculator hub |
| Sole trader | A self-employed individual running an unincorporated business in their own name. There is no separate limited company for tax purposes. | Most sole traders are self-employed, but not every self-employed person describes themselves as a sole trader. If you invoice customers directly and keep business profits personally, the sole-trader page is the closest match. | Estimate tax as a sole trader |
| Freelancer | A common business label for someone selling skills or project work to clients, often alongside employment. HMRC usually taxes freelance income as self-employed trading income unless another structure applies. | A freelancer may also be a sole trader. Use the freelance page for client work, consulting, contracting, design, writing or similar project income. | Check freelance income tax |
| Small business | A practical description, not a single tax status. A small business might be a sole trader, partnership or limited company. | For an unincorporated side business or owner-operated trade, start with this self-employed hub. If you trade through a limited company, corporation tax, payroll and dividends are outside this calculator. | Start with the small-business tax guidance |
If you are ready to run an estimate now, jump back to the private browser tax calculator and enter your gross income, expenses and PAYE salary.
Official Sources
Worked examples: self-employed and small business tax for 2025/26
Example 1
Full-time self-employed worker with £28,000 of trading income and £3,200 of allowable expenses. Profit of £24,800 sits in the basic-rate band, so the bill is roughly 20% Income Tax above £12,570 plus 6% Class 4 NI on profit above £12,570. Class 2 NI is treated as paid because profits clear the Small Profits Threshold.
Example 2
Side self-employed worker with a £42,000 PAYE salary and £8,000 of profit after expenses. The salary uses most of the basic-rate band, so some self-employed profit crosses into 40% Income Tax. Class 4 NI on the trading profit is charged separately through Self Assessment.
Example 3
Higher-earning self-employed contractor with £75,000 of profit. The first slice is taxed at 20%, the rest at 40% up to £125,140, with Class 4 NI at 6% to £50,270 and 2% above. A Self Assessment bill of this size will normally trigger payments on account for the following year.
FAQs
What does this self-employed tax calculator estimate?
It estimates 2025/26 UK Income Tax and Class 4 National Insurance on self-employed or sole-trader profit, optionally combined with a PAYE salary. It uses rates and thresholds for England, Wales and Northern Ireland. If you are a Scottish taxpayer, use the Scottish self-employed tax calculator linked from the region toggle because Scottish Income Tax bands differ.
How is self-employed tax calculated in the UK?
HMRC taxes self-employed people on profit (income minus allowable expenses). Profit is added to any other taxable income, then taxed through Self Assessment at the same Income Tax rates as employment income, plus Class 4 National Insurance on profit above the lower limit. For 2025/26 Class 4 NI is 6% between £12,570 and £50,270, and 2% above £50,270.
Can I use this as a small business tax calculator?
Yes, for unincorporated small businesses — that is, sole traders and freelancers running a business in their own name. The figures match what HMRC charges through Self Assessment: Income Tax and Class 4 National Insurance on business profit, plus a Class 2 NI credit once profit clears the Small Profits Threshold. Limited companies are different: they pay Corporation Tax on company profit and then directors pay Income Tax and dividend tax on what they draw out, so this calculator does not model them.
Do self-employed people still pay Class 2 National Insurance?
From April 2024 onwards, self-employed people with profits at or above the Small Profits Threshold (£6,725 for 2024/25, £6,845 for 2025/26) are treated as having paid Class 2 NI without any cash payment, which still builds State Pension entitlement. Below that threshold you can pay voluntary Class 2 NI to protect your contributions record.
Which expenses can self-employed workers claim?
You can deduct costs that are wholly and exclusively for the business — for example stock, materials, business travel and mileage, software and subscriptions, professional fees, business insurance, and a proportion of home and phone costs where used for work. Personal-use elements should be excluded or apportioned.
When do payments on account apply?
Payments on account apply when your Self Assessment bill is at least £1,000 and less than 80% of your tax was collected through PAYE or other means. HMRC asks for two equal payments toward the following year's bill, due 31 January and 31 July, each one half of the previous year's Self Assessment liability.
Should I use the £1,000 trading allowance or actual expenses?
If gross trading income is £1,000 or less, the trading allowance can exempt it entirely. Above £1,000 you can usually choose between deducting the £1,000 trading allowance or deducting your actual allowable expenses. Pick whichever is larger — you cannot claim both for the same trade.
More Side Hustle Tax Calculators
Compare other side-hustle scenarios using the same privacy-safe calculator. If you also want a general view across PAYE plus any additional earnings, use the UK extra income tax calculator.
Freelancer vs sole trader vs small business: what HMRC actually cares about
For UK tax, the labels you use to describe yourself matter much less than the legal structure of your business. "Freelancer", "sole trader" and "small business" overlap in everyday English, but HMRC only really distinguishes two things: are you self-employed in your own name (unincorporated), or are you a limited company?
Sole trader
A sole trader is the legal status. You are self-employed, trading under your own name (or a trading name), with no separate legal entity. HMRC taxes you personally on business profit through Self Assessment: Income Tax plus Class 4 National Insurance, with a Class 2 NI credit once profit clears the Small Profits Threshold. Most UK freelancers and one-person small businesses are sole traders. Use the sole trader tax calculator for the same maths framed around sole trader status.
Freelancer
"Freelancer" is a working style, not a legal status. Most freelancers in the UK operate as sole traders, taxed exactly like other self-employed people. A small number trade through a limited company instead, often because clients prefer it or because dividend planning makes sense above a certain profit level. If you are an unincorporated freelancer, this calculator and the freelance tax calculator UK give the same Income Tax and Class 4 NI result.
Small business
"Small business" is the loosest of the three. It is used for both unincorporated businesses (sole traders and partnerships) and limited companies under a certain size. For unincorporated small businesses, the tax sits with the owner under Self Assessment and this calculator applies. Limited companies pay Corporation Tax on company profit, and directors then pay Income Tax and dividend tax on salary and dividends drawn from the company — a different calculation that this tool does not cover.
Which one are you, for tax?
- Self-employed in your own name, no company set up at Companies House — sole trader, taxed under Self Assessment. This calculator applies.
- Working freelance for clients, invoicing in your own name, not incorporated — also a sole trader for tax. This calculator applies.
- One-person business, not incorporated — a small business that is taxed as a sole trader. This calculator applies.
- Limited company at Companies House with you as director and shareholder — not a sole trader. You pay Corporation Tax on company profit and personal tax on salary plus dividends. This calculator does not model that.
If you are unsure whether to stay unincorporated or move to a limited company, the sole trader vs limited company explainer sets out the trade-offs. For most one-person UK side hustles and small businesses the sole trader route is simpler and the figures from this calculator are the ones that matter.
Try it: jump back to the self-employed tax calculator above and enter your gross self-employed income, allowable expenses and any PAYE salary to see your estimated 2025/26 bill.