🇬🇧 United Kingdom

Self-Assessment Tax Calculator 2025/26

Work out your income tax, National Insurance and payments on account as a self-employed sole trader or mixed-income earner.

£
Total invoiced/received before any expenses
£
Office costs, travel, stock, professional fees, etc.
If expenses < £1,000, trading allowance may be simpler
£
PAYE employment income, rental profits, etc.
£
Personal pension contributions. Tax relief extends basic rate band.
£
Net amount you donated. Gift Aid extends basic rate band.

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How to Use This Calculator

Self-Employed Tax tab

The default tab. Enter your gross self-employment income and allowable expenses. The calculator shows your taxable profit, income tax at each band (20%, 40%, 45%), Class 2 and Class 4 National Insurance, and your take-home after all deductions. If your expenses are under £1,000, try the trading allowance option instead. Expand "More options" to add other income, pension contributions, or Gift Aid donations.

Payment on Account tab

Enter your current year and previous year tax bills to see whether HMRC requires payments on account. The calculator shows your two POA amounts, balancing payment, and a full calendar of key dates — including 31 January and 31 July deadlines. Useful for cash flow planning.

Mixed Income tab

If you have income from multiple sources — employment, self-employment, rental, dividends, and savings interest — this tab calculates the total tax picture. It correctly stacks income types, applies the personal allowance (with taper above £100,000), dividend allowance, and savings allowance. You'll see Class 1 NI on employment and Class 2 + Class 4 NI on self-employment.

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The Formula

Self-employed tax in the UK has two components: income tax and National Insurance.

Taxable Profit = Gross Income − Allowable Expenses (or Trading Allowance)

Income Tax = (Profit in basic band × 20%) + (Profit in higher band × 40%) + (Profit in additional band × 45%)

Class 2 NI = £3.50 × 52 weeks = £182.00/year (if profit > £12,570)
Class 4 NI = (Profit between £12,570–£50,270) × 6% + (Profit above £50,270) × 2%

Total Tax & NI = Income Tax + Class 2 NI + Class 4 NI
Effective Rate = Total Tax & NI ÷ Total Income × 100

The personal allowance of £12,570 is deducted before applying tax bands. If your total income exceeds £100,000, the personal allowance is reduced by £1 for every £2 above the threshold — creating an effective 60% marginal rate in the £100,000–£125,140 range.

Payments on account are each 50% of the previous year's self-assessment tax bill. They're required when the bill exceeds £1,000 and less than 80% was collected at source via PAYE.

Example

Priya — Freelance Graphic Designer, 32, Bristol

Priya earns £55,000 gross from freelance design work, with £8,000 in allowable expenses (software subscriptions, home office, travel, professional indemnity insurance). She has no other income.

Self-Employed Tax tab

Gross income£55,000
Allowable expenses−£8,000
Taxable profit£47,000
Personal allowance−£12,570
Taxable income£34,430

Tax breakdown

Income tax (20% on £34,430)£6,886
Class 2 NI (£3.50 × 52)£182
Class 4 NI (6% on £34,430)£2,066
Total tax + NI£9,131
Effective rate19.4%
Take-home£37,869

Priya takes home £37,869 after paying £6,886 income tax and £2,245 in National Insurance. Her effective tax rate is 19.4% — well below the 20% basic rate headline because of the personal allowance.

FAQ

HMRC allows you to deduct expenses that are "wholly and exclusively" for your business. Common allowable expenses include: office costs (stationery, phone, internet), travel costs (fuel, train tickets, parking — NOT commuting), clothing (uniforms, protective gear — NOT everyday clothes), staff costs, financial costs (insurance, bank charges), business premises costs, advertising and marketing, professional subscriptions, and training directly related to your business. If you work from home, you can claim a proportion of household costs or use HMRC's simplified expenses (flat rate based on hours worked).
You must register with HMRC by 5 October following the tax year in which you started self-employment. For the 2025/26 tax year, register by 5 October 2026. Register online at gov.uk — HMRC will send you a Unique Taxpayer Reference (UTR). If your self-employment income is under £1,000 (the trading allowance), you generally don't need to register or file a return. However, you may still want to register to pay voluntary Class 2 NI to protect your State Pension.
Yes. If you expect your tax bill to be lower than the previous year, you can apply to reduce your payments on account using HMRC form SA303 (available online). Be careful: if you reduce them too much and your actual bill is higher, HMRC will charge interest on the underpayment. It's safer to pay the full amount and claim a refund if you overpay.
Missing the 31 January online deadline triggers an automatic £100 penalty, even if you owe no tax. After 3 months late: £10/day (up to 90 days = £900 max). After 6 months: 5% of tax owed or £300, whichever is greater. After 12 months: additional 5% or £300. Interest is also charged on late payments from the due date. If you have a reasonable excuse (serious illness, bereavement, HMRC system failure), you can appeal the penalty.
If your adjusted net income exceeds £100,000, your personal allowance is reduced by £1 for every £2 of income above £100,000. This means the allowance is fully eliminated at £125,140. In the £100,000–£125,140 range, your effective marginal tax rate is 60% (40% income tax + 20% from losing the personal allowance). Pension contributions can reduce your adjusted net income below £100,000, restoring the full personal allowance — a powerful tax planning strategy.

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