Your total business income before expenses
Legitimate business expenses you can deduct
Percentage of taxable profit contributed to pension
Reg. 07380272 · England & Wales · Est. 2010
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Net Income
£32,488.80
Monthly Net
£2,707.40
Weekly Net
£624.78
Effective Tax Rate
22.6%
Everything you need to know about self-employed tax in the UK
What taxes do self-employed people pay?
Self-employed people in the UK pay income tax on their taxable profits (after deducting allowable expenses and the personal allowance), Class 2 National Insurance (a flat weekly rate of £3.45/week if profits exceed £12,570), and Class 4 National Insurance (6% on profits between £12,570 and £50,270, and 2% above £50,270). You may also have student loan repayments collected through Self Assessment.
What are allowable expenses for the self-employed?
Allowable expenses are costs you incur wholly and exclusively for your business. Common examples include office supplies, travel costs, professional subscriptions, accounting fees, phone and internet bills (business portion), marketing costs, and equipment. You can also claim simplified expenses for working from home (£6/week flat rate) and business mileage. Keeping accurate records of all expenses is essential for your Self Assessment tax return.
When do I need to register as self-employed?
You must register with HMRC as self-employed by 5 October in your business's second tax year. For example, if you started trading in the 2025/26 tax year (from 6 April 2025), you must register by 5 October 2026. You register through the HMRC website and will need to file a Self Assessment tax return each year. Late registration can result in penalties.
How does the personal allowance work for the self-employed?
The personal allowance for 2025/26 is £12,570 — meaning the first £12,570 of your taxable profit is tax-free. However, if your adjusted net income exceeds £100,000, your personal allowance is reduced by £1 for every £2 over £100,000, creating an effective 60% marginal tax rate in the £100,000–£125,140 range. Once income exceeds £125,140, the personal allowance is fully withdrawn.
HMRC-Aligned: This calculator uses official 2025/26 tax rates, NI thresholds, and student loan repayment plans. Actual results may vary depending on your specific circumstances. Consult an accountant for personalised advice.
This calculator uses official rates and thresholds from:
- Income tax rates and bands
- Self-employed National Insurance (Class 2 & 4)
- Student loan repayment thresholds
Last verified: February 2026 · Tax year 2025/26. Results are indicative — consult a qualified accountant for personalised advice.
Reviewed by M. Samiuddin Quadri, ACCA — Chartered Certified Accountant at Gladstone & Co. · Updated for the 2025/26 tax year.
Disclaimer: This calculator provides estimates based on current HMRC rates and thresholds for the 2025/26 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified accountant or tax adviser before making financial decisions. Read our terms