Calculate your self-employed tax including Income Tax, National Insurance, and Class 2/4 NICs.
Total Tax Bill
£7,311
Effective rate: 18.3%
Profit
£40,000
Income Tax
£5,486
Class 2 NI
£179
Class 4 NI
£1,646
Take Home
£32,689
Monthly
£2,724
Being self-employed means you are responsible for calculating and paying your own tax through the Self Assessment system. Unlike employees who have tax deducted automatically via PAYE, sole traders must report their income and expenses to HMRC and pay the resulting tax bill themselves. At Calculator Site, we built this tool to give you a clear estimate of your liabilities based on the latest UK tax rates for the 2026/27 tax year.
Crucial Tip: Set Money Aside for Tax
A common pitfall for newly self-employed people is not setting aside enough money to cover their tax bill. A good rule of thumb is to save 25-30% of every payment you receive in a separate bank account. This ensures you have the funds ready when the payment deadline arrives, helping you avoid late payment penalties and stress. Our Take-Home Pay Calculator can also help you visualise your net earnings.
Your total tax bill is made up of several components. The largest is usually Income Tax, which is charged on your profits above the Personal Allowance. You also pay two types of National Insurance Contributions (NICs) which fund state benefits like the pension. For limited companies, our Corporation Tax Calculator is a more suitable tool.
20% & 40%
Basic & Higher Tax Rates
6% & 2%
Class 4 NI on Profits
£12,570
Tax-Free Personal Allowance
How to use this Calculator Site tool
Enter your total expected annual self-employed revenue (your total sales or turnover) and any allowable business expenses you expect to incur. The calculator will automatically deduct your expenses from your revenue to find your profit, and then apply the relevant tax and National Insurance rates to estimate your total bill. The results update instantly as you type. For official guidance, visit GOV.UK self-employment guide.
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