How much tax will you pay in 2026/27?
A free estimate for sole traders and limited company directors — in 30 seconds, no sign-up. Based on this year's HMRC rates (6 April 2026 – 5 April 2027).
Estimate for England, Wales and Northern Ireland. The maths runs in your browser — nothing is sent anywhere unless you ask us to check it below.
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This is an estimate. Our IFA-accredited accountant can look at your actual figures — a free, no-obligation chat. Leave your details and we'll get back to you.
The 2026/27 rates we use
All figures are for the tax year 6 April 2026 to 5 April 2027 and apply in England, Wales and Northern Ireland.
| Income Tax | Rate |
|---|---|
| Personal Allowance — up to £12,570 | 0% |
| Basic rate — £12,571 to £50,270 | 20% |
| Higher rate — £50,271 to £125,140 | 40% |
| Additional rate — over £125,140 | 45% |
The Personal Allowance shrinks by £1 for every £2 of income over £100,000 and is gone at £125,140.
| Self-employed National Insurance | Rate |
|---|---|
| Class 4 — profits £12,570 to £50,270 | 6% |
| Class 4 — profits over £50,270 | 2% |
| Class 2 — treated as paid from £7,105 profit (voluntary £3.65/week below) | £0 |
| Limited company | Rate |
|---|---|
| Corporation Tax — profits up to £50,000 | 19% |
| Corporation Tax — profits over £250,000 | 25% |
| Between £50,000 and £250,000 | 25% less marginal relief |
| Dividend allowance | £500 at 0% |
| Dividend tax — basic / higher / additional | 10.75% / 35.75% / 39.35% |
| Employer's National Insurance — salary over £5,000 | 15% |
| Employee National Insurance — salary £12,570 to £50,270 / above | 8% / 2% |
Sources: Income Tax rates · Self-employed National Insurance · Tax on dividends · Corporation Tax rates (gov.uk).
What this estimate leaves out
- Scottish Income Tax rates
- Student or postgraduate loan repayments
- Pension contributions, Gift Aid and other reliefs
- Marriage Allowance and other allowances
- Property, savings, or other income besides the figures you enter
- The £1,000 trading allowance (an alternative to claiming expenses)
- VAT
- Capital allowances and loss relief
- For limited companies: associated companies, short accounting periods, benefits in kind, director's loans, Employment Allowance
- Our fees, or any accountancy costs
Common questions
When do I actually have to pay?
Your Self Assessment return and payment are due by 31 January after the tax year ends — 31 January 2028 for 2026/27. If your bill is over £1,000, HMRC usually also asks for two “payments on account” towards next year: half by 31 January and half by 31 July.
Why is my first bill so much bigger than my tax?
In your first year of Self Assessment the January payment covers that year's tax plus the first payment on account for the following year (half of that bill again). It catches many new sole traders out — set money aside every month so it isn't a shock.
Do I need to use Making Tax Digital?
From 6 April 2026, self-employed people and landlords with qualifying income over £50,000 must keep digital records and send HMRC quarterly updates using compatible software. The limit drops to £30,000 from 6 April 2027 and £20,000 from 6 April 2028. Qualifying income is your gross income before expenses. Our Quarterly Filing plan takes care of it.
Is a limited company better than being a sole trader?
It depends on your profit, how much you want to take out, whether you'd leave profit in the company, your clients and your appetite for admin. Dividend tax rates rose in April 2026, so at many income levels the saving is smaller than it used to be — which is exactly why it's worth a conversation before you decide.
Does this work for Scotland?
No — Scottish Income Tax bands are different. Tell us you're in Scotland and we'll work it out for you.