Self-employed tax calculator
On £50,000 of trading profit in 2026/27 you owe £7,486.00 of income tax and £2,245.80 of Class 4 National Insurance, leaving £40,268.20 — an effective rate of 19.5%.
Sole traders and partners. Assumes a standard personal allowance and no other income. For a limited company, use the limited company calculator.
Trading income minus allowable expenses — the figure on your Self Assessment return.
Profit after tax and National Insurance
£40,268.20
Effective rate 19.5%
Breakdown
- Trading profit
- £50,000.00
- Personal allowance
- £12,570.00
- Taxable profit
- £37,430.00
- Income tax
- £7,486.00
- Class 4 National Insurance
- £2,245.80
- Profit after tax
- £40,268.20
Income tax by band
| Band | Profit taxed | Tax |
|---|---|---|
| Basic rate (20%) | £37,430.00 | £7,486.00 |
Class 4 National Insurance
| Profit band | Profit charged | NIC |
|---|---|---|
| £12,570 to £50,270 (6%) | £37,430.00 | £2,245.80 |
Class 2 National Insurance
Your profit is at or above the small profits threshold of £7,105, so no Class 2 is payable — your National Insurance record is credited as though you had paid it.
Effective rate
19.5%
Total tax + NIC
£9,732
Monthly net
£3,356
Self-employed vs employed on the same figure
An employee on a salary of £50,000 pays the same income tax, but Class 1 National Insurance at 8% rather than Class 4 at 6%. Their employer also pays secondary NI on top, which a sole trader has no equivalent of.
| On £50,000 | Sole trader | Employee |
|---|---|---|
| Income tax | £7,486.00 | £7,486.00 |
| National Insurance | £2,245.80 | £2,994.40 |
| Left after tax | £40,268.20 | £39,519.60 |
A like-for-like comparison also has to price in holiday pay, sick pay, an employer pension contribution and redundancy rights, none of which a sole trader gets.
Self-employed tax questions
Sources & last updated
- GOV.UK — Self-employed National Insurance rates
- GOV.UK — Income Tax rates and Personal Allowances
- GOV.UK — Self Assessment tax returns
Rates checked against the sources above and last reviewed for the 2026/27 tax year. This is a guidance tool, not tax or legal advice — for anything that turns on your own circumstances, speak to a qualified adviser. See how we calculate for the full method.