An United Kingdom-specific calculator with the official 2026/27 brackets, Class 4 National Insurance, and VAT threshold. See your true net profit after tax — and exactly how much to set aside per invoice.
🇬🇧 Tax year 2026/27 (6 Apr 2026 – 5 Apr 2027)
Pick your country, enter your gross income and expenses — the math updates live in GBP.
In the United Kingdom, sole traders and self-employed contractors are taxed on their profits — gross business income minus allowable expenses (or the £1,000 Trading Allowance, whichever is greater) — through the Self Assessment system. The 2026/27 tax year runs from 6 April 2026 to 5 April 2027. Income Tax is progressive: the first £12,570 is covered by the Personal Allowance at 0%, then 20% (basic rate) to £50,270, 40% (higher rate) to £125,140, and 45% (additional rate) above. The Personal Allowance tapers away for profits over £100,000, falling by £1 for every £2 above that threshold and reaching zero at £125,140 — an effective 60% marginal rate in that band.
On top of Income Tax, Class 4 National Insurance applies to profits: 6% between £12,570 and £50,270, and 2% above £50,270. Compulsory Class 2 NIC was abolished in April 2024, but if your profits are at or above the Small Profits Threshold (£7,105 for 2026/27) your NI record is credited automatically at no cost; below that, voluntary Class 2 at £3.65/week protects your State Pension entitlement. Scotland sets its own income tax bands — with more brackets and a top rate of 48% — so use the Scotland toggle if you live there. National Insurance is the same across the whole UK.
Self Assessment tax is paid in stages. The balancing payment for the year just ended is due on 31 January, alongside the first Payment on Account — an advance instalment equal to half of your previous year's tax bill. The second Payment on Account is due on 31 July. This structure is the single most common source of 'surprise bill' complaints: a first-time filer's January payment is often around 1.5× their actual annual liability because it bundles the current year's balance with the first advance instalment toward next year. Budget for it using the payment calendar on this page.
Allowable expenses include equipment and hardware, software and subscriptions, a home-office portion (simplified or actual), professional fees (accountant, legal), insurance, and travel/vehicle costs. The £1,000 Trading Allowance replaces expense claims if your costs are below that figure — you cannot claim both. Capital equipment may qualify for the Annual Investment Allowance (AIA) for full upfront relief. VAT registration is compulsory once taxable turnover exceeds £90,000.
UK sole traders pay Income Tax on their profits (gross income minus allowable expenses or the £1,000 Trading Allowance) using the 2026/27 bands: 0% up to the £12,570 Personal Allowance, 20% to £50,270, 40% to £125,140, and 45% above. On top, Class 4 National Insurance is 6% on profits between £12,570 and £50,270 and 2% above that. The Personal Allowance tapers by £1 for every £2 of profit over £100,000, reaching £0 at £125,140.
No. Compulsory Class 2 was abolished from April 2024. If your profits are at or above the Small Profits Threshold (£7,105 for 2026/27), your NI record is credited automatically at no cost. If profits are below that, you can pay voluntary Class 2 at £3.65/week to protect your State Pension entitlement.
The Trading Allowance makes the first £1,000 of self-employment income tax-free. You can claim it instead of actual expenses — but not both. If your expenses are below £1,000, claim the allowance (less paperwork). If they are above £1,000, claim actual expenses (bigger deduction). This calculator automatically applies whichever is larger.
Because of Payments on Account. HMRC requires advance instalments toward next year's bill, each equal to half of your previous year's tax. On 31 January you pay the balancing payment for the year just ended PLUS the first instalment for the next year — so your first bill is roughly 1.5× your actual annual liability. Budget for it using the payment calendar on this page.
You must register for VAT once your taxable turnover exceeds £90,000 in any 12-month period (2026/27 threshold). Voluntary registration is possible below that if it benefits your business. Once registered, you charge VAT on sales and can reclaim VAT on business purchases. This calculator flags the threshold based on your gross income.
Yes — toggle "Scotland" on the UK tab to apply the 2026/27 Scottish bands, which have more brackets and higher top rates (up to 48%) than the rest of the UK. National Insurance is the same across the UK. If you live in Scotland, use the Scottish toggle for an accurate estimate.
Your estimate subtracts your business expenses from your gross income to get net profit, then applies United Kingdom's official 2026/27 income tax brackets and Class 4 National Insurance, using the VAT threshold flag for your gross income. The result shows your take-home pay and how much to set aside per invoice.