Self-Employed Tax Calculator
Calculate your tax and National Insurance as a self-employed professional or freelancer
Self-Employed Tax Calculation
Income before deducting expenses
E.g., office costs, equipment, supplies
From company dividends (£500 allowance applies)
Profit & Tax
National Insurance
Profit After All Deductions
£21,461.92
Effective tax rate: 14.15%
Tax Calculation Summary
Note: This is a simplified calculation for illustration. Your actual tax liability depends on various factors including dividend allowances, personal allowance, and other reliefs.
For accurate calculations and professional tax advice, consult with a qualified accountant or tax advisor before your self-assessment deadline.
Self-Employment Tax Breakdown
Income Tax
You pay income tax on your trading profit after deducting allowable expenses and a £1,000 tax-free allowance.
- Tax-free allowance: £1,000
- Personal allowance: £12,570 (same as employees)
- Tax rates: Use Scottish tax bands for your profit above allowance
Class 2 National Insurance
A flat annual fee (currently around £163.80) if you earn above the threshold.
- Applies if profit is above £6,725
- Counts towards state pension entitlement
- Fixed amount per year, not percentage-based
Class 4 National Insurance
A percentage of your profits, calculated alongside your tax bill.
- 9% on profits between £11,908 and £50,270
- 2% on profits above £50,270
- Calculated on trading profit, not dividends
- Also counts towards state pension
Allowable Expenses
You can deduct reasonable business expenses from your income to reduce your tax bill:
- Office equipment and software
- Professional fees and training
- Vehicle and travel costs
- Office supplies and utilities
- Insurance and professional fees
- Home office costs (allowance or actual)
Tip: Keep records of all expenses and invoices to support your tax return. The earlier you register as self-employed, the sooner you can reduce your tax bill through expense deductions.
Self-Assessment Tax Return
As a self-employed person, you must submit a Self-Assessment tax return to HMRC by January 31st following the end of the tax year.
Tax Year 2025/26: Tax year runs from April 6, 2025 to April 5, 2026. Your tax return must be submitted by January 31, 2027.