How it works

We built this because the first January after going self-employed catches people out: the bill is not the only thing due. Enter your annual freelance profit (turnover minus allowable expenses) for the tax year just ended (the return due 31 January 2027), and the calculator works out your income tax and Class 4 National Insurance, then each payment on account. With the defaults, a £40,000 profit gives a bill of £7,131.80, so each payment on account is £3,565.90. Nothing you type leaves your browser. There is no account, no upload, and nothing is stored.

For the full year-end picture, including the 31 January 2027 filing deadline, see our freelancer tax return checklist, publishing soon (link to be added when that article goes live).

Do payments on account apply to you?

Payments on account apply only when two things are both true. First, your bill (income tax plus Class 4 National Insurance) is £1,000 or more. Second, 80% or less of the tax was already collected at source, for example through PAYE. If your bill is under £1,000, or more than 80% was already collected, there are no payments on account: you pay the whole bill by 31 January.

The first-year shock: 150% in January

In your first year, 31 January means two payments at once: the full bill for the year just ended, plus the first payment on account for the year ahead. That is 150% of one year’s bill, due on a single day. Take the £40,000 example: the bill is £7,131.80 and the first payment on account is £3,565.90, so £10,697.70 is due by 31 January 2027. The second payment on account, another £3,565.90, is due by 31 July 2027. If you have already made payments on account, January is different: you pay a balancing payment (this year’s bill minus the payments on account already made) plus the first payment on account for next year.

If next year will be lower

If you know next year’s income will be lower, you can ask HMRC to reduce your payments on account, either through your HMRC online account or by sending form SA303 to your tax office. You will need to say how much you expect to make, so HMRC can work out the new payments. Be careful with the estimate: if the bill turns out higher than you expected, HMRC charges interest on the shortfall. Only reduce the payments if you have a genuine reason to expect lower income.

What this does not cover

This is an estimate for a straightforward case, and it leaves out several things on purpose:

  • Class 2 National Insurance. It is not in the bill above. In 2026/27, Class 2 is treated as paid if your profits are £7,105 or more, so most established freelancers owe nothing extra. If your profits are below that, voluntary Class 2 is £3.65 a week in 2026/27 and is paid separately.
  • Capital Gains Tax and student loan repayments. Neither is included in payments on account. Both go in the January balancing payment only.
  • Pension contributions. They are not included. Paying into a pension can reduce the tax due by extending the basic rate band, so if you pay into a pension, this estimate will be on the high side.
  • Scotland. Income tax bands are different in Scotland. This tool covers England, Wales and Northern Ireland only.
  • Other income. The calculator assumes freelance profit is your only income. If you also have employment income, the personal allowance is usually used there first, so the figures here would be wrong. The tax already deducted at source only feeds the 80% test above.
  • Trading allowance. If your total self-employed turnover is up to £1,000, you may not need to pay tax on it at all. This calculator starts from profit, so it does not apply the allowance.

This page explains general information for UK freelancers. It is not tax advice, and it covers 2026/27 for England, Wales and Northern Ireland only. Your exact bill depends on your full circumstances. If the amount is large or the situation is complicated, get proper professional advice.

Sources: GOV.UK, Income Tax rates and Personal Allowances (personal allowance, bands, taper; read 2 November 2026); GOV.UK, Self-employed National Insurance rates (Class 4 rates, Class 2 threshold and voluntary rate; read 2 November 2026); GOV.UK, Understand your Self Assessment tax bill (payments on account, balancing payment, SA303 reduction, interest on shortfall; read 2 November 2026).