📋 HMRC Self Assessment 2026/27💷 6% Class 4 NIC Rate📊 £12,570 Personal Allowance
UK Self-Employment & Sole Trader Tax Calculator 2026/27
Estimate your Income Tax and Class 4 National Insurance on sole trader profits under 2026/27 rules, including Trading Allowance, Class 2, and Payments on Account.
2026/27 Self-Employed Tax & NIC Rules
Class 4 NIC is charged at 6% on profits between £12,570 and £50,270 (and 2% above £50,270). Class 2 is treated as paid for profits of £7,105 or more.
Sole Trader Tax & Class 4 NIC Estimator
Calculates Income Tax, Class 4 NIC, and Payments on Account
2026/27 Self-Employment Tax & NIC Rates
| Tax / NIC Component | 2026/27 Threshold | Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Basic Rate Income Tax | £12,571 to £50,270 | 20% |
| Higher Rate Income Tax | £50,271 to £125,140 | 40% |
| Class 4 NIC (Main Rate) | £12,571 to £50,270 | 6% |
| Class 4 NIC (Upper Rate) | Over £50,270 | 2% |
| Class 2 Small Profits Threshold | £7,105 | Treated as Paid (£3.65/wk voluntary below £7,105) |
Frequently Asked Questions (6 Detailed FAQs)
Class 4 NIC is 6% on self-employed profits between £12,570 and £50,270, and 2% on profits above £50,270.
The trading allowance covers up to £1,000 of gross trading income. If your turnover is higher, you can choose between deducting the £1,000 allowance or actual expenses.
Payments on Account are due on 31 January and 31 July, each equal to 50% of the previous year’s tax liability.
Allowable expenses must be incurred wholly and exclusively for business (office costs, travel, marketing, professional fees).
No. Scotland has separate Income Tax bands and rates, while Class 4 NIC remains governed by UK-wide rules.
You must register for Self Assessment by 5 October following the tax year in which your gross trading income exceeds £1,000.
Official 2026/27 HMRC Sources
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2026/27 Key Figures
Personal Allowance£12,570
Class 4 NIC Rate6% (£12.57k - £50.27k)
Class 2 Small Profit£7,105
Trading Allowance£1,000