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Self-employed

Self-employed

Quick answer

On £52,000 of sole trader profit, expect to set aside about £10,529 for HMRC. That leaves roughly £41,471.

That is 20% of profit going to tax and Class 4 NI. The first January bill is about £15,793 including payment on account.

Uses the inputs below and 2026/27 rates.

Net take home pay

£41,471

£52,000 profit − £10,529 tax · effective 20.2%

2026/27 rates · Last checked · Sources in page details

Set aside each month

£877

Park this in a separate savings account and Self Assessment becomes a non-event.

Year 1 (incl. POA)

£1,316/mo

until first January

Where it goes

Total tax £10,529

£60,000 revenue, £8,000 expenses

Net to you

£41,471

Income tax

£8,232

Class 4 NIC

£2,297

Payments on account

Your first 31 January bill is £15,793.

That's £10,529 balancing payment plus a 50% payment on account (£5,264) towards next year. A second 50% is due 31 July.

Making Tax Digital

Qualifying self-employment and/or property income (gross turnover, before expenses) over £50,000 brings you into MTD for Income Tax from 6 April 2026. The threshold drops to £30,000 from April 2027 and £20,000 from April 2028. You'll need MTD-compatible software for quarterly updates.

Income tax bands

How your taxable profit is split across rate bands.

£0£39,430

Income tax £8,232

Class 4 NIC bands

6% on profit between £12,570 and £50,270, then 2% above.

£0£39,430

Class 4 NIC £2,297

Breakdown

Revenue

£60,000

− Expenses

− £8,000

= Trading profit

£52,000

− Income tax

− £8,232

− Class 4 NIC

− £2,297

= Net to you

£41,471

Where your tax goes

on £10,529 income tax + Class 4 NIC

This is an estimate. The government does not set aside your exact tax for these areas.

21%

£2,243

Welfare

≈ 32 weeks of welfare per citizen

21%

£2,200

Health

≈ 224 days of NHS care (per citizen)

12%

£1,253

State Pensions

≈ 5 weeks of state pension

11%

£1,137

National Debt Interest

10%

£1,084

Education

≈ 29 school days funded

6%

£579

Defence

See the full UK budget →

+ £2,044 across public order & safety, transport, business & industry and 6 more

Estimates onlyShow

Calculations use HMRC published rates for education and illustration. They are not regulated financial, tax, or legal advice. Verify against your own tax position before filing or making financial decisions.

Where does it all go?

UK public spending 2024/25, line by line

£1.29 trillion across 15 categories, welfare, NHS, debt interest, defence, the lot.

Background reading

Self-employed tax in 2026/27

Show

Sole traders pay income tax and Class 4 NIC on their profit (revenue minus allowable expenses). Class 2 was abolished in April 2024, but Class 4 is now 6% between £12,570 and £50,270, then 2% above. Most sole traders get a payment-on-account demand on top of their balancing payment, due in two halves on 31 January and 31 July. From 6 April 2026, MTD for Income Tax is mandatory if your qualifying self-employment and/or property income (gross turnover, not profit) exceeds £50,000, falling to £30,000 in 2027 and £20,000 in 2028.

  • How much tax do I pay if I'm self-employed in 2026/27?

    You pay income tax on your profit using the same bands as employees (20%, 40%, 45%) after the £12,570 personal allowance. On top, Class 4 National Insurance is 6% between £12,570 and £50,270, then 2% above. Class 2 was abolished from April 2024, so most sole traders no longer pay it.

  • What are payments on account?

    If your income tax + Class 4 NIC bill is over £1,000 and less than 80% is collected at source, HMRC asks you to make two payments on account, each 50% of the previous year's bill, due 31 January and 31 July. The Afterax self-employed calculator highlights when the payment-on-account trigger applies.

  • What expenses can I claim?

    Anything wholly and exclusively for the business: subscriptions, equipment, business travel (not home-to-work), use-of-home, accountancy fees, mobile and broadband proportional to business use, and so on. Keep records, Making Tax Digital for Income Tax requires digital records from April 2026 for income above £50,000.

  • Should I pay voluntary Class 2 NIC?

    Only if your profits are under the Small Profits Threshold (£7,105 for 2026/27) and you want a qualifying year for the State Pension. The voluntary rate is £3.65/week. Above the threshold, you get the qualifying year automatically without paying anything.

Privacy, sources & last reviewed1 May 2026 · Show

Privacy and independence

Built and maintained by Afterax as an independent educational UK tax calculator project. Calculations run in your browser using HMRC 2026/27 rates. Inputs can be saved on this device and included in share links.

Sources

Bands, thresholds and reliefs come from official sources and are checked when a Budget or in-year change is announced.

Last reviewed 1 May 2026 · updated for 2026/27 · view changelog →