Sole Trader Tax Logo Sole Trader Tax
2026/27 Tax Year

2026/27 Sole Trader Tax Calculator

Check your estimated self-employed taxes, allowances, and net take-home pay for the current tax year.

2026/27 HMRC rates No signup No data stored Browser-only calculation

Your details

£30,000
£
£0 £50k £100k £150k £200k

Your total earnings before any expenses.

£

Allowable costs like equipment, travel, and office supplies.

£

Reduces your taxable income for Income Tax.

Estimated annual take-home

£21,768

£1,814

/ month

£419

/ week

Breakdown

Taxable profit £25,000
Personal allowance £12,570
Income Tax £2,486
National Insurance (Class 4) £746
Total deductions £3,232
Effective tax rate 12.93%

How your income is split

Take-home Income Tax NI

Payments on Account

1st PoA (31 Jan 2028) —
2nd PoA (31 Jul 2028) —

Each PoA = 50% of your current tax bill. Only applies if your bill exceeds £1,000.

Take-home

£21,768

£1,814 / mo

Eff. rate: 12.93%

Tax Year 2026/27: What Changed?

The 2026/27 UK tax year (spanning 6 April 2026 to 5 April 2027) brings several key policy shifts affecting freelancers, sole traders, and contractors:

  • Making Tax Digital (MTD) Rollout: Starting April 2026, sole traders with qualifying gross income over £50,000 must keep digital records and submit quarterly summaries.
  • Dividend Tax Increase: Standard basic rate and higher rate dividend taxes increased by 2 percentage points to 10.75% and 35.75% respectively.
  • Class 2 NI Abolished: Mandatory weekly Class 2 National Insurance payments are fully gone. State pension credits are protected automatically for those earning above the Small Profits Threshold.
  • Scottish Threshold Adjustments: The upper limits of the Scottish Starter and Basic bands increased by 7.4% to account for inflation, providing minor relief to middle-income taxpayers.

2026/27 Tax FAQs

What are the main sole trader tax changes in 2026/27?
The key changes include the mandatory rollout of Making Tax Digital (MTD) for sole traders earning over £50,000, a 2% rise in dividend tax rates, and the full abolishment of Class 2 National Insurance contributions.
How is Income Tax calculated for 2026/27?
Income tax is charged after subtracting your personal allowance (£12,570). The remaining profits are taxed at 20% (basic rate up to £50,270), 40% (higher rate up to £125,140), and 45% (additional rate above that).