🧮 2025/26 Tax Year · Updated Rates

Self-Employment Tax Calculator 2025/26.

Free UK tax calculator for self-employed, freelancers and PAYE employees. Estimate your Income Tax, NICs and Student Loan repayments instantly using the correct 2025/26 rates — including the new 6% Class 4 NIC and the abolished paid Class 2. Built by chartered accountants. No signup required.

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2025/26
Current Rates
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⚠️ Important: This calculator uses 2025/26 HMRC rates including Class 4 NIC at 6% (reduced from 9% in April 2024) and the abolished paid Class 2 NIC. Results are estimates — your final tax position is determined when you file. Over-claiming expenses triggers HMRC penalties from £300 to £10,000+. We charge £300 for an annual self-assessment if your turnover is below £50K, or £150/quarter for MTD compliance if above. Free Business Mentor consultation included with both.

📊 Enter your details

Gross income from self-employment, freelancing or sole trading
⚠️ Mixed-use items (vehicle, phone, broadband, home office) need accurate proportions — over-claiming = HMRC penalty
Optional — if you also have a PAYE job

💡 Maximise your legitimate deductions

  • Mileage at 45p/mile for first 10,000 miles, 25p after
  • Home office: £6/week simplified or actual proportion
  • Phone & broadband: only the business %
  • Tools, equipment, software, professional subscriptions
  • Pension contributions reduce taxable income at marginal rate

💷 Your tax breakdown

Net profit (income − expenses)£0
Total taxable income£0
Income tax£0
Class 1 NIC (8% / 2% — PAYE)£0
Class 4 NIC (6% / 2%)£0
Class 2 NIC (abolished — voluntary only)£0
Student loan repayment£0
Total tax & deductions £0
Estimated take-home pay £0
Get your tax return filed properly

Two paths. Pick the one that matches your turnover.

From April 2026 the rules split self-employed people into two groups based on qualifying income. We handle both — same chartered firm, same Mon-Sat hours, same Business Mentor included free.

Under £50K turnover Annual self-assessment

One-off Self Assessment

£300 one-off

For self-employed below the £50K MTD threshold. Single annual return, full expense optimisation, payment-on-account planning, and we keep you compliant with HMRC.

  • SA100 self-assessment preparation & filing
  • Full expense review (we typically find £3K+ missed)
  • Class 2 / Class 4 NIC computed correctly
  • Student loan repayments calculated
  • Payment on account planning
  • HMRC correspondence handled
  • Free Business Mentor consultation included
Book my £300 SA filing →
Over £50K turnover MTD for Income Tax · April 2026

MTD Quarterly Compliance

£150 /quarter
£600 per year · covers all 4 quarters + final declaration

From 6 April 2026, self-employed with qualifying income above £50K must file quarterly digital submissions to HMRC. We handle all four plus the year-end final declaration.

  • All 4 quarterly digital submissions to HMRC
  • Year-end final declaration filed on time
  • Allowable expenses tracked all year — no January panic
  • Compatible MTD-software setup included
  • Quarterly tax-saving review
  • Payment on account managed automatically
  • Free Business Mentor consultation included
Book my MTD quarterly →
⚡ MTD for Income Tax — already in effect

From 6 April 2026 the rules changed.

Sole traders and landlords with qualifying income above £50,000 must now file quarterly digital submissions to HMRC under Making Tax Digital for Income Tax — that's 4 submissions per year plus a final declaration, instead of one annual return.

From April 2027 the threshold drops to £30,000 and from April 2028 likely to £20,000. Below those thresholds you can still file a single annual self-assessment as before. Read the detail on our dedicated MTD for Income Tax service page.

Allowable expenses

Common deductions for self-employed.

Tap any card to flip and see what's included. Mixed-use items (vehicle, phone, broadband) require accurate business-use proportions.

🏢

Office & workspace

Business proportion of office costs.

Tap or hover

Includes

  • Rent (business proportion)
  • Business rates
  • Utilities (business %)
  • Office cleaning & insurance
  • Home office £6/wk simplified
🚗

Travel & vehicle

Mileage or actual business proportion.

Tap or hover

Includes

  • Mileage 45p first 10K, 25p after
  • Or actual costs at business %
  • Public transport & parking
  • Business journey tolls
  • Vehicle insurance & servicing
💼

Professional fees

Expert services and subscriptions.

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Includes

  • Accountancy fees
  • Legal advice
  • Professional subscriptions
  • Industry memberships
  • Trade body fees
💻

Equipment & tools

Business assets and software.

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Includes

  • Computers, laptops, phones
  • Office furniture
  • Software subscriptions
  • Tools and machinery
  • Repairs & maintenance
📱

Phone & broadband

Business proportion only.

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Includes

  • Mobile (business %)
  • Broadband (business %)
  • Landline rental
  • Web hosting
  • Domain renewals
📢

Marketing & advertising

Promoting your business.

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Includes

  • Website costs
  • Online ads (Google, Meta)
  • Print materials
  • Business cards
  • Networking events
⚠️ Critical for DIY filers

Over-claiming expenses = HMRC penalties.

Most DIY filers either miss legitimate deductions or over-claim and face fines. The line between these is detail HMRC takes seriously. Tap any card to see the consequences.

💰

£300 minimum penalty

Careless errors on expense claims.

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Careless errors

  • Claiming 100% vehicle when 60% business
  • Full broadband bill without proportion
  • £300 minimum, can reach £3,000
  • Plus interest on underpaid tax
📊

30-70% extra tax

Deliberate but not concealed errors.

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Deliberate errors

  • Knowingly over-claiming
  • 30-70% of underpaid tax as penalty
  • Plus interest charges
  • Recorded against you for future
🚨

100% + prosecution

Concealed deliberate fraud.

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Deliberate concealment

  • Hiding income or inflating expenses
  • 100% of tax underpaid
  • Criminal prosecution possible
  • Public naming on HMRC list
❌

Common mistakes

What triggers the penalties.

Tap or hover

Typical errors

  • Personal meals as business
  • Clothing and gym memberships
  • Wrong home-office percentage
  • No mileage log for vehicle
  • 100% claims on mixed-use items
🔍

Proportion rules

What must be calculated.

Tap or hover

Requires proportions

  • Vehicle costs (business %)
  • Phone bills (business %)
  • Broadband (business %)
  • Home office space & time
  • Utilities at home office
✅

How LOYALS protects you

Zero penalty risk, max savings.

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Our approach

  • Exact proportion calculations
  • Compliant record-keeping setup
  • Maximum legitimate deductions
  • Average £3,200 saved/year
  • Zero penalties for LOYALS clients
Critical dates

Key tax deadlines for the 2025/26 tax year.

Miss any of these and HMRC charges penalties starting at £100 with no extension. We handle every one of them automatically for our clients.

5
OCT 2026

Self Assessment registration

If you started self-employment in 2025/26, register for self-assessment by 5 October 2026 to avoid £100 penalty.

31
OCT 2026

Paper return deadline

If filing by paper (not recommended), 2025/26 self-assessment must reach HMRC by 31 October 2026.

31
JAN 2027

Online filing & tax payment (2025/26)

Online self-assessment deadline plus payment of tax owed plus first payment on account. Late = £100 immediate penalty escalating from there.

31
JUL 2027

Second payment on account

If your tax bill exceeded £1,000, second 50% advance payment is due. Can be reduced if income drops.

Q1
FROM APR 2026

MTD quarterly submissions (£50K+)

If qualifying income exceeds £50K, file quarterly MTD submissions starting 7 August 2026, 7 November 2026, 7 February 2027, 7 May 2027.

KN ★
★ Your dedicated account manager

Meet Kris Nick.

Founder & Senior Chartered Accountant · Personally manages every self-assessment

When you book LOYALS for your self-assessment — annual or MTD quarterly — Kris handles your account directly. No junior staff, no ticket queues, no "I'll check with the team". One name, one number, one chartered accountant who knows tax inside out and answers WhatsApp on Saturdays.

Book a call with Kris →

Ready to hand it over? Book a free 15-min call.

Tell us about your situation in 4-5 questions and we'll quote you in writing — £300 if you're under £50K, £150/quarter if you're MTD. No pressure, no follow-up if it's not a fit.

Mon-Sat 10am-7pm No obligation Fixed fee in writing Same-day callback
Book my free 15-min call → 💬 WhatsApp instead
Tax questions answered

Frequently asked questions.

Updated for 2025/26 tax year. If your question isn't here, message us on WhatsApp or book a free 15-minute call.

What is the Class 4 NIC rate for self-employed in 2025/26?+
Class 4 NIC is 6% on self-employment profits between £12,570 and £50,270, and 2% on profits above £50,270. The rate was reduced from 9% to 6% in April 2024. Many older calculators still use the outdated 9% rate which produces incorrect results — ours uses the current 6% rate.
Do self-employed still pay Class 2 National Insurance?+
No — paid Class 2 NIC was abolished from April 2024. You no longer pay £3.45 per week. However, you may choose to pay voluntary Class 2 NIC at £3.50 per week to maintain your State Pension entitlement if your profits are below the Small Profits Threshold of £6,725. Most full-time self-employed with profits above the threshold get the qualifying year automatically.
From April 2026 do self-employed need MTD for Income Tax?+
Yes — if your qualifying income (gross self-employment plus any property income before expenses) is above £50,000 you must use Making Tax Digital for Income Tax from 6 April 2026. That means quarterly digital submissions plus a final declaration. From April 2027 the threshold drops to £30,000. Below those thresholds you can still file an annual self-assessment return. We handle MTD compliance at £150 per quarter.
How much does a self-employment tax return cost with LOYALS?+
For self-employed with qualifying income below £50,000 we charge £300 one-off for your annual self-assessment — preparation, expense optimisation, HMRC submission, and payment on account planning. For self-employed above the £50,000 MTD threshold we charge £150 per quarter (£600 per year) which covers all four MTD quarterly submissions plus the year-end final declaration. Both options include unlimited WhatsApp support and a free Business Mentor consultation.
Can I use this calculator to verify my P60 or payslip?+
Yes. Switch to PAYE Verification mode and enter your gross employment salary. The calculator estimates the Income Tax and Class 1 NIC your employer should have deducted at 2025/26 rates. If your P60 or payslip shows materially different figures, you may be on a wrong tax code, missing student loan deductions, or your employer made an error. Common cause: emergency tax codes used at the start of new employment that are never corrected.
What can I claim as an allowable expense if I'm self-employed?+
You can claim expenses that are wholly and exclusively for business purposes. Common categories: office costs (rent, rates, utilities at business proportion), travel (mileage at 45p/mile first 10K then 25p, or actual vehicle costs at business %), equipment and tools, phone and broadband (business %), accountancy and professional fees, marketing, insurance, and home office (£6/week simplified or actual proportion). Mixed-use items like vehicles, phone and home utilities require accurate proportion calculations — over-claiming triggers HMRC penalties from £300.
What student loan plan do I have and how is it deducted?+
Plan 1 (started before 2012) repays at 9% above £26,065. Plan 2 (2012-2023 in England/Wales) repays at 9% above £28,470. Plan 4 (Scotland) repays at 9% above £32,745. Plan 5 (England, started after August 2023) repays at 9% above £25,000. Postgraduate loans repay at 6% above £21,000. Repayments are calculated on total income (employment plus self-employment) and collected via PAYE for employees or self-assessment for self-employed.
What is payment on account for self-employed?+
If your tax bill exceeds £1,000 (after PAYE deductions if you have mixed income), HMRC requires two advance payments toward next year's tax: 50% by 31 January with your tax return, and 50% by 31 July. These are advance payments, not extra tax. If your income drops you can claim a reduction. We manage this automatically for our monthly clients.
How quickly can LOYALS register me as self-employed with HMRC?+
We register new self-employed clients within 14 working days for £200 one-off. The process: a quick phone call to gather your details (NI number, business activity, start date), online submission to HMRC, and you receive your Unique Taxpayer Reference (UTR) typically within 10 working days. You must register within 3 months of earning £1,000+ from self-employment, or by 5 October following the tax year you started. Late registration triggers an automatic £100 penalty.
Do self-employed need to keep business records?+
Yes. HMRC requires you to keep all business records for at least 6 years after the 31 January submission deadline. Records include all sales invoices, expense receipts, bank statements, mileage logs, and supporting documents for any expense claimed. Missing records can trigger up to £3,000 penalty plus disallowed expenses. From April 2026 MTD makes digital record-keeping mandatory for self-employed with qualifying income above £50,000.

Related LOYALS pages

If you're done with the calculator and want to dig deeper.

👤 Self Assessment Service 📱 MTD for Income Tax 🧑‍💼 Freelancer Accountants 🏠 Landlord Accountants 🔨 CIS Construction 📊 Bookkeeping 💷 Full Service Fees 🧮 All Free Calculators 🔄 Switching Accountants

Tired of doing this yourself?

Hand it to a chartered accountant. £300 for under £50K turnover, £150/quarter for MTD above £50K. Free Business Mentor consultation included with both. Book a free 15-minute call.

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