How much tax do self-employed people pay in 2025/26?

In England, Wales and Northern Ireland, income tax is 20% on taxable income up to £37,700 above the £12,570 personal allowance, 40% above that and 45% over £125,140. Class 4 National Insurance is 6% of profits between £12,570 and £50,270 and 2% above. Scotland has different income tax rates.

What are payments on account?

Advance payments towards next year's tax bill. Each is half of this year's Self Assessment bill, due on 31 January and 31 July. You don't make them if your bill is under £1,000 or more than 80% of your tax was already taken at source, for example through PAYE.

When do I pay my 2025/26 tax bill?

The online tax return and the balancing payment for 2025/26 are due by 31 January 2027, together with any first payment on account for 2026/27. A second payment on account is due by 31 July 2027.

Do I still have to pay Class 2 National Insurance?

No. Since 6 April 2024 self-employed people don't have to pay Class 2 National Insurance. You can choose to pay it voluntarily if your profits are low, to protect your State Pension.

Self-employed tax calculator 2025/26

See what you'll owe for the 2025 to 2026 tax year: income tax, Class 4 National Insurance and payments on account, and exactly what to pay on 31 January 2027.

Self-employment profit

Your sales minus allowable expenses (or minus the £1,000 trading allowance, if that's bigger). Leave blank if none.

Rental profit (your share)

Rent minus allowable property expenses, before mortgage interest. Leave blank if none.

Mortgage interest on residential lets (your share)

Interest only, not capital repayments. You get a 20% tax credit for it instead of deducting it.

Pay from a job or pension

Before tax, as shown on your P60. Leave blank if none.

Tax already taken through PAYE

The tax figure on your P60.

Payments on account you've already made for 2025/26

If you paid HMRC in January 2026 and July 2026 towards this year, add both together. Leave blank in your first year.

Where do you live?

Scotland has its own income tax rates.

England, Wales or Northern Ireland Scotland

Get every figure for your tax return

This calculator needs your profit. Our Self Assessment spreadsheet works it out from your records, then lists the exact figure for each box of the 2025/26 online return.

Income, expenses, mileage and rental property in one Excel or Google Sheets file
The same tax, National Insurance and payments on account estimate as this page
Comes with a demo file showing a full example year

See the Self Assessment spreadsheet

How the 2025/26 bill is worked out

Income tax rates

Everyone gets a £12,570 personal allowance, which shrinks by £1 for every £2 of income over £100,000.

England, Wales and Northern Ireland: 20% on the next £37,700, 40% up to £125,140, then 45%.
Scotland: 19%, 20%, 21%, 42%, 45% and 48% bands. Your job's tax code may already use these.

Class 4 National Insurance

6% of self-employment profit between £12,570 and £50,270, and 2% above £50,270. It isn't charged on rental profit or on wages. Class 2 has not been compulsory since April 2024, but you can choose to pay it if your profits are low, to protect your State Pension.

Payments on account

HMRC usually asks for half of this year's bill in advance towards next year, on 31 January and again on 31 July. That's why the first January bill often feels so big. You don't make them if your bill is under £1,000, or if more than 80% of your tax was already taken at source through PAYE.

If your income has dropped, you can ask HMRC to reduce your payments on account.

Mortgage interest for landlords

You can't deduct residential mortgage interest from rental profit. Instead you get a tax credit of 20% of the lowest of your finance costs, your rental profit, and your income above the personal allowance. Any unused amount carries forward.

What this calculator leaves out

Savings interest, dividends and capital gains
Student loan and postgraduate loan repayments
The High Income Child Benefit Charge
Extra relief for pension contributions or Gift Aid
Losses carried forward and unused finance costs from earlier years

If any of these apply, your real bill will be different. HMRC's own calculation, when you file, is the final word.

Key dates for 2025/26

31 January 2027: online return and payment deadline, plus your first payment on account for 2026/27
1 February 2027: £100 penalty if the return is late, and interest on anything unpaid
31 July 2027: second payment on account