What expenses can I deduct as a self-employed person?

Allowable expenses include office costs, travel (not commuting), equipment, professional subscriptions, staff costs, marketing, accountancy fees, and a proportion of home costs if you work from home. Personal expenses are not deductible.

Do self-employed people still pay Class 2 NI?

No. Class 2 NI was abolished from 6 April 2024. Self-employed people only pay Class 4 NI (6% on profits from £12,570 to £50,270, and 2% above £50,270). You can still pay voluntary Class 3 contributions to protect your State Pension record.

Do I need to register for VAT as self-employed?

If your taxable turnover exceeds £90,000 in any 12-month rolling period, you must register for VAT. Registration is voluntary below this threshold and can benefit some businesses. Use the VAT Registration Threshold Calculator to check.

Self-Employed Tax Planner

Estimate your total tax bill as a sole trader or self-employed person for 2026/27. Enter your revenue and allowable business expenses to see your taxable profit, income tax, NI contributions, and take-home pay.

UK rates for the 2026/27 tax year · last checked against GOV.UK on 6 April 2026

How it's calculated

Taxable Profit = Revenue − Business Expenses
Income Tax: 20% (£12,571–£50,270), 40% (£50,271–£125,140), 45% above
Class 4 NI: 6% (£12,570–£50,270), 2% above

Rates and sources

This calculator uses UK rates for the 2026/27 tax year, last checked against GOV.UK on 6 April 2026.

Self-employed NI and income tax — official guidance:

Rates change, usually at the start of a tax year in April. Always confirm against GOV.UK before relying on a figure for a filing or a financial decision.

Frequently Asked Questions

What expenses can I deduct as a self-employed person?: Allowable expenses include office costs, travel (not commuting), equipment, professional subscriptions, staff costs, marketing, accountancy fees, and a proportion of home costs if you work from home. Personal expenses are not deductible.
Do self-employed people still pay Class 2 NI?: No. Class 2 NI was abolished from 6 April 2024. Self-employed people only pay Class 4 NI (6% on profits from £12,570 to £50,270, and 2% above £50,270). You can still pay voluntary Class 3 contributions to protect your State Pension record.
Do I need to register for VAT as self-employed?: If your taxable turnover exceeds £90,000 in any 12-month rolling period, you must register for VAT. Registration is voluntary below this threshold and can benefit some businesses. Use the VAT Registration Threshold Calculator to check.