UK Self-Employed Tax Calculator
Being self-employed or a freelancer has many advantages. You can be your own boss, set your hours, and choose your projects. But there are also some drawbacks, including dealing with your income tax and National Insurance.
Our self-employed tax calculator is for the 24/25 and 25/26 tax years. Below is an example of our tax calculator.
When employed by someone else, they withhold the appropriate taxes from your pay and remit it to the government on your behalf. You will receive a wage slip showing your take-home pay. But when you’re self-employed, that responsibility falls on you. That’s why we’ve developed a self-assessment tax calculator to simplify things.
Self-Assessment Tax Return
A self-assessment tax return is a form that taxpayers use to calculate and pay their taxes and National Insurance. The self-assessment system is used by self-employed individuals, landlords, and people with other sources of income, such as investments.
If you are self-employed and have a turnover from your self-employment income of over £1000, you must complete a return each tax year and pay tax. The tax year runs from 6th April to 5th April.
How the Freelance Tax Calculator UK Works
Our calculator takes the guesswork out of tax and National Insurance figures for self-employed income. Enter your net annual profits, and we’ll calculate how much income tax and national insurance are due. We’ll also show the annual and monthly figures so you can budget accordingly. And because we know tax rates can change each year, we’ll always use the most up-to-date rates.
The net annual profits of a business are the total annual income it earns throughout a year, less the cost of goods sold and less other business costs.
The Benefits of Using a Self-Employed Tax Calculator
There are a few key benefits of using our tax and national insurance calculator for self-employment:
Save time – With our calculator, you can quickly and easily calculate your taxes without wading through pages of confusing information.
Save money – Knowing how much you need to pay in taxes ahead of time, you can budget accordingly and avoid any penalties or interest charges for non-payment.
Using Accounting Software
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Sage UK – 90% for 3 Months – FREE plan for Sole-Traders, AI tools for bookkeeping automation
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If you use some accounting software packages that have a self-employed plan, they will often include a tax estimate. One example is QuickBooks. The sole trader plan starts from £10 per month. Sage UK offer a simple free sole trader plan.
What is Income Tax
Income tax is a tax that the government imposes on individuals and collects from HMRC. It is based on your income, and for the self-employed, you are taxed on any profits made from both products and services that you sell.
Income Tax Rates
The Income tax rate you pay will depend on the business’s profits. Each person has a tax-free allowance, called a personal allowance and then is charged tax on anything earned over the allowance.
The table below covers the 24-25 and 25/26 tax years.
| Tax Band | Taxable Income | Tax Rate |
|---|---|---|
| Personal Allowance | £0 – £12,570 | 0% |
| Basic Rate | £12,571 – £50,270 | 20% |
| Higher Rate | £50,271 – £125,140 | 40% |
| Additional Rate | Over £125,140 | 45% |
National Insurance Contributions Rates
You pay National Insurance contributions to qualify for a state pension and certain benefits. There are different types of NI, also known as classes. Classes 2 and 4 are paid on profits over £12,570.
Class 2 National Insurance
In 25/26, if you earn over £6,845, class 2 contributions are treated as paid. If your profits are below £6,845, you can opt to pay £3.50 per week to ensure your NI record is protected.
Class 4 National Insurance
Class 4 NI is based on the profits of the business. The table below shows the reductions for the 24-25 and 25-26 tax years, as per the March 2024 and 2025 budgets.
| Profits | National Insurance Tax Rate 24-25 & 25/26 |
|---|---|
| Less than £12,570 | 0% |
| Between £12571 and £50,270 | 6% |
| Over £50,270 | 2% |
Self-Employed Calculator for Tax Year 2024/2025 and 2025/2026
Enter your gross annual profits, and we’ll calculate the tax and national insurance due. We’ll also show the annual and monthly figures so you can budget accordingly. Because we know tax rates can change each year, we will keep old calculators available for the previous year. So, if you’re looking for a quick and easy way to calculate your taxes, look no further than our self-employed tax calculator!
To calculate your profits, take the business’s income figure and deduct any allowable business expenses.
An example is a business with a self-employment income of £15,000, self-employment expenses of £600, and taxable profits of £14,400. The figure for £14,400 is entered as the profits.
Disclaimer
We hope you find our tax calculator helpful in managing your finances and calculating self-employment income. If you have any questions or feedback, please don’t hesitate to contact us. Our calculations are for illustrative purposes only. We have done our best to give accurate figures. If you are unsure, we suggest you speak to your accountant.
Payments Due
There are two payment dates: 31st January the following year, for a balancing payment, and 31st July, for a payment on account. When you complete the assessment return, the figures are calculated for each date.
Payments Example
For a business with profits of £60,000 for the 25/26 tax year, the amount owed is £26,260.44. They would need to pay income tax and NI of £26,260.44 by 31st January 2027, plus a payment on account of £13,130.22 for the following tax year. The payments are, therefore:
31st January 2027 – £26,260.44 + £13,130.22 = £39,390.66
1st July 2027 – £13,130.22
Note, these figures do not include payments on account already made to HMRC.
What if I’m Employed and Self-Employed?
If you are both employed and self-employed, we suggest you use the tax calculators at https://www.employedandselfemployed.co.uk/.
My profits are over £100,000. Can I still use the calculator?
No, once your profits are over £100,000, your personal allowance will reduce by £2 for each £1. Our calculator only works for under £100,000.
