Skilful Designers2026/27 rates used
| Band | Profit | Income tax | Class 4 NI |
|---|---|---|---|
| Personal allowance | Up to £12,570 | 0% | 0% |
| Basic rate | £12,571 to £50,270 | 20% | 6% |
| Higher rate | £50,271 to £125,140 | 40% | 2% |
| Additional rate | Over £125,140 | 45% | 2% |
The personal allowance shrinks by £1 for every £2 of income over £100,000, so it is gone entirely at £125,140. Between £100,000 and £125,140 that creates an effective income tax rate of 60%. These thresholds are frozen until April 2031. See GOV.UK for National Insurance and income tax rates.
See the full breakdown for common amounts in the self-employed tax by profit table, from £20,000 to £150,000.
Worked examples
- £45,000 profit: income tax 20% × £32,430 = £6,486. NI 6% × £32,430 = £1,945.80. Total £8,431.80, take-home £36,568.20 (£3,047 a month).
- £60,000 profit: income tax £7,540 + 40% × £9,730 = £11,432. NI £2,262 + 2% × £9,730 = £2,456.60. Total £13,888.60, take-home £46,111.40.
- £20,000 profit: income tax £1,486, NI £445.80, take-home £18,068.20.
When you pay it
Tax for the 2026/27 year (6 April 2026 to 5 April 2027) is due by 31 January 2028, through Self Assessment. If your bill is over £1,000, HMRC also asks for payments on account towards the next year: half of this year's bill on 31 January and half on 31 July. That makes the first January after a good year expensive, so set money aside from every invoice. The tax guide for designers covers registering, expenses and Making Tax Digital.
Frequently asked questions
How much tax does a self-employed person pay in the UK?
For 2026/27 in England, Wales and Northern Ireland, you pay no income tax on the first £12,570 of profit, 20% on the next £37,700, 40% up to £125,140 and 45% above that. On top, Class 4 National Insurance is 6% of profit between £12,570 and £50,270 and 2% above that. On a £45,000 profit the total is £8,431.80.
How much should I put aside for tax as a freelancer?
A common rule is 25 to 30% of profit, which is cautious for most basic-rate taxpayers. The calculator shows your actual rate: on £45,000 of profit it is 18.7%, and on £60,000 it is 23.1%. Setting a little more aside than you need covers your first payment on account.
Do I still pay Class 2 National Insurance?
No longer compulsorily. Since April 2024, self-employed people with profits above the small profits threshold get National Insurance credits towards their State Pension without paying Class 2. If your profits are lower, you can choose to pay Class 2 voluntarily to protect your State Pension record.
What is the trading allowance?
If your self-employed income in a year is £1,000 or less, you do not need to tell HMRC or pay tax on it. If it is more, you can deduct £1,000 instead of your actual expenses. That is worth doing only when your real expenses are under £1,000.
Does this work for Scotland?
National Insurance is the same across the UK, but Scotland sets its own income tax bands for earned income, with six rates instead of three. This calculator uses the rates for England, Wales and Northern Ireland, so the income tax figure will be off for Scottish taxpayers.
Sources
The figures and rules in this tool follow these official sources, checked on 3 November 2026:
Cite this tool
Skilful Designers. “Self-Employed Tax Calculator 2026/27.” https://skillfuldesigners.co.uk/self-employed-tax-calculator/ (updated 3 November 2026). Built by Sumair Roudani.