Self-employed tax and take-home pay calculator (2026/27)
Enter your day rate, days worked and expenses, or your yearly turnover. You'll see an estimate of Income Tax and Class 4 National Insurance, what you take home, and how much to set aside from every £100 you invoice, with any CIS already deducted taken off.
The 2026/27 rates used
These come from GOV.UK for the tax year 6 April 2026 to 5 April 2027:
| Item | 2026/27 figure |
|---|---|
| Personal Allowance (tax-free) | £12,570. It falls by £1 for every £2 of adjusted net income over £100,000 and is zero from £125,140 |
| Basic rate | 20% on taxable income up to £37,700 (income of £12,571 to £50,270 with a full allowance) |
| Higher rate | 40% on income of £50,271 to £125,140 |
| Additional rate | 45% over £125,140 |
| Class 4 NI | 6% on profits between £12,570 and £50,270, then 2% above £50,270 |
| Class 2 NI | Nothing to pay if profits are £7,105 or more. Below £7,105 you may choose to pay £3.65 a week voluntarily |
| Trading allowance | £1,000 tax-free on income from self-employment (you can't also claim expenses against it) |
The calculator applies Income Tax to your profit after the Personal Allowance, works out Class 4 NI on the same profit, and adds the two. It does not add voluntary Class 2.
How tax is worked out for a sole trader
You pay tax on profit, not turnover. Profit is what you invoiced (or received, if you use the cash basis) minus allowable business expenses. GOV.UK gives the example of turnover of £40,000 and £10,000 of allowable expenses: you only pay Income Tax on the £30,000. If you use the £1,000 trading allowance you can't also deduct expenses.
So the order is: turnover, minus expenses, gives profit; take off the Personal Allowance; tax the rest in bands; then add Class 4 NI on profit above £12,570.
Worked examples
1. £165 a day, 5 days a week, 46 weeks. Turnover £37,950. Expenses £3,000, so profit is £34,950. Taxable income is £34,950 − £12,570 = £22,380, taxed at 20% = £4,476.00. Class 4 NI is 6% × £22,380 = £1,342.80. Total £5,818.80, leaving £29,131.20 or about £2,427.60 a month. That is £15.33 set aside from every £100 you invoice.
2. £250 a day over the same 46 weeks. Turnover £57,500, expenses £5,000, profit £52,500. Income Tax: £37,700 × 20% = £7,540 plus £2,230 × 40% = £892, total £8,432.00. Class 4: 6% × £37,700 = £2,262 plus 2% × £2,230 = £44.60, total £2,306.60. Overall £10,738.60, an effective rate of 20.5%, leaving £41,761.40.
3. £165 a day with 20% CIS deducted. Same as example 1, but your contractors have already taken £7,590 (20% of £37,950). Your bill is £5,818.80, so HMRC owes you £1,771.20.
If you work under CIS
GOV.UK says CIS deductions count as advance payments towards your tax and National Insurance bill. At the end of the tax year you record your total pay before deductions as income and the deductions as "CIS deductions" on your Self Assessment return; HMRC works out the tax you owe and takes off the deductions. If you still owe, you pay by 31 January after the tax year ends. If you've paid too much, HMRC pays the money back. The CIS refund calculator is built for exactly this, and our guide to claiming back CIS deductions covers the steps.
Payments on account
If you are self-employed you may have to pay in two instalments: payments on account, due by 31 January and 31 July, each usually half of last year's bill (including Class 4 NI). GOV.UK says you don't have to make them if last year's tax was under £1,000 or if you paid more than 80% of it outside Self Assessment. The first time you file, this means your January bill can include the full tax for the year and a first payment on account towards the next one, so the money you set aside needs to cover more than a single year's bill. Using the figure from example 1, a bill of £5,818.80 would lead to payments on account of £2,909.40 each.
What this calculator doesn't do
It doesn't cover Scotland, where Income Tax bands are different. It doesn't handle student loan repayments, pension relief, Gift Aid, other income such as employment or rent, or the Marriage Allowance. It also uses an exact figure for the reduced Personal Allowance over £100,000, which may differ from HMRC's by a pound or so. If you're VAT registered, enter your turnover excluding VAT. For a tax return, use HMRC's own tools or ask an accountant.
Frequently asked questions
How much tax will I pay on £40,000 self-employed?
With no expenses and England, Wales or NI rates in 2026/27, £40,000 profit gives £5,486 Income Tax and £1,645.80 Class 4 NI, a total of £7,131.80. Use the calculator for your own figures.
What are the Class 4 National Insurance rates for 2026/27?
GOV.UK shows 6% on profits between £12,570 and £50,270 and 2% on profits above £50,270. Class 2 is treated as paid if profits are £7,105 or more.
How much should I set aside for tax?
It depends on your profit. In the worked examples above, tax and NI come to 16.6% of profit at £34,950 and 20.5% at £52,500. The calculator shows the amount to set aside from every £100 you invoice.
Is my take-home pay after tax the same as my wages?
No. It is profit after tax and NI, before you pay your own living costs, pension or other deductions. You don't get a payslip, so you set the money aside yourself.
Does this work if I'm in Scotland?
No. GOV.UK says Income Tax bands are different in Scotland, and this calculator uses the standard bands only.
Is this the same as the HMRC tax calculator?
No. It is an estimate for planning. HMRC's Self Assessment calculation takes in everything on your return.
Sources
- Income Tax rates and Personal Allowances – GOV.UK
- Self-employed National Insurance rates – GOV.UK
- Expenses if you're self-employed – GOV.UK
- What you must do as a CIS subcontractor – GOV.UK
- CIS: pay tax and claim back deductions – GOV.UK
- Payments on account – GOV.UK
This guide is general information, not legal, tax or financial advice. Rules and rates change, so check the linked GOV.UK pages for the current position.