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Self-Employed Tax Calculator

Work out a simple self-employed tax estimate from business income, allowable expenses and taxable profit.

Inputs

Estimate Income Tax and Class 4 National Insurance for sole trader profit.

Turnover, expenses and taxable profit

Self-employed tax is normally based on profit rather than total turnover. Allowable business expenses are deducted from business income before Income Tax and Class 4 National Insurance are estimated.

How self-employed tax differs from PAYE

Employees normally have deductions collected through payroll. Sole traders usually report profit through Self Assessment and pay the resulting bill directly to HMRC. Payments on account can mean paying part of the following year's estimated bill at the same time.

Allowable business expenses

Common allowable costs can include business insurance, professional fees, equipment, marketing and qualifying travel. Costs must be incurred for the business, and records should be kept to support the figures used.

Worked examples

Freelancer with £40,000 income and £5,000 expenses

The calculator treats £35,000 as estimated taxable profit, then applies Income Tax and Class 4 National Insurance to show an estimated amount left after tax.

How we calculate this

Business expenses are deducted from income to estimate taxable profit.

Income Tax is estimated after the personal allowance.

Class 4 National Insurance is estimated on self-employed profit.

Official sources

FAQs

Are these calculations financial advice?

No. These calculators provide estimates based on the figures entered and published UK tax assumptions. They are not personal financial advice.

Which tax year does this use?

The calculator uses 2026/27 UK tax assumptions, including Income Tax and National Insurance thresholds.

Will my payslip or tax return match exactly?

Not always. Tax codes, payroll timing, pension scheme type, benefits, expenses and HMRC records can change the final result.

Is this suitable for sole traders?

Yes. It is designed for a simple sole trader or freelance estimate. Limited company tax, VAT and payments on account are not fully modelled.

Work & Income

Employed vs Self-Employed

Compare employment and self-employment for stability, flexibility, tax admin and benefits.

Read comparison

Read the full comparison

The question is not only tax. Employees receive a package around the salary: predictable pay, holiday, sick pay, pension contributions and employment rights. Self-employed people may keep more control and deduct business expenses, but they carry the risk and admin themselves.

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