Question 1

How do I calculate self-employed tax in the UK?

Accepted Answer

As a self-employed person in the UK, you pay Income Tax on your profits above the Personal Allowance (£12,570 in 2025/26), plus Class 4 National Insurance at 6% on profits between £12,570 and £50,270, and 2% on profits above £50,270. Use the calculator above to get your exact figures instantly.

Question 2

What is the self-employed tax rate in the UK for 2025/26?

Accepted Answer

For 2025/26: Income Tax is 0% up to £12,570 (Personal Allowance), 20% on £12,571–£50,270, 40% on £50,271–£125,140, and 45% above £125,140. Class 4 National Insurance is 6% on £12,570–£50,270 and 2% above £50,270.

Question 3

How do you calculate tax if you are both employed and self-employed?

Accepted Answer

If you have both employed and self-employed income, HMRC combines your total income to determine your tax band. Your employed income uses your PAYE code; your self-employed profits are then added on top. This calculator handles mixed income scenarios — enter your employed income and self-employed profit separately.

Question 4

How much National Insurance do I pay as a sole trader?

Accepted Answer

As a sole trader, you pay Class 4 National Insurance: 6% on profits between £12,570 and £50,270, and 2% on profits above £50,270. Class 2 NI (£3.50/week) applies if your profits exceed the Small Profits Threshold of £6,845, though from April 2024 Class 2 is effectively treated as £0 for most sole traders while still crediting your National Insurance record.

Question 5

What is the Personal Allowance for self-employed people in 2025/26?

Accepted Answer

The Personal Allowance is £12,570 for 2025/26 — the same for self-employed and employed people. If your income is over £100,000, the allowance is gradually withdrawn at a rate of £1 for every £2 earned above £100,000, disappearing entirely at £125,140.

Question 6

Do freelancers pay the same tax as sole traders?

Accepted Answer

Yes. In the UK, "freelancer" and "sole trader" are the same from a tax perspective. Both pay Income Tax on profits via Self Assessment and Class 4 National Insurance. The self-employed tax rates are identical regardless of whether you call yourself a freelancer, contractor, or sole trader.

Question 7

What is the self-employed tax threshold in the UK?

Accepted Answer

You need to register for Self Assessment and pay tax once your self-employed income exceeds £1,000 in a tax year (the Trading Allowance). You start paying Income Tax on profits above £12,570 (the Personal Allowance). You pay Class 4 NI on profits above £12,570 and Class 2 NI on profits above £6,845.

Question 8

Can I use this as a sole trader tax calculator?

Accepted Answer

Yes — this calculator is designed for UK sole traders. Enter your total self-employed profit for the tax year (income minus allowable expenses) and your employed income if you also have a job. The calculator will show your estimated Income Tax and National Insurance for 2025/26.

UK Self-Employed Tax Calculator 2025/26

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Tax Breakdown (2025/26)

Income Tax Rates 2025/26

National Insurance (Self-Employed)

Frequently Asked Questions

What is the difference between employed and self-employed tax?

How do I work out tax if I'm both employed and self-employed?

Does this calculator work as a sole trader tax calculator?

Is this the same as the self-employed NI calculator?

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