Calculate your total tax liability including income tax, National Insurance, dividend tax, and payments on account for 2026-27.
This calculator provides estimates only. Your actual tax liability depends on your full circumstances, allowances, and reliefs. Always consult HMRC or a qualified accountant.
Self assessment is the system HMRC uses to collect income tax from individuals whose tax affairs are not fully handled through PAYE. If you are self-employed, a company director, a landlord, or you have significant untaxed income from dividends, savings, or other sources, you will likely need to file a self assessment tax return each year. For the 2026-27 tax year, the self assessment system brings together all your income sources to calculate your total tax liability. This includes income tax on employment and self-employment income, rental profits, and savings; dividend tax at the special dividend rates; Class 2 and Class 4 National Insurance on self-employment profits; and any student loan repayments that apply. Income tax for 2026-27 uses the standard bands: a personal allowance of GBP 12,570, basic rate of 20% (GBP 12,571 to GBP 50,270), higher rate of 40% (GBP 50,271 to GBP 125,140), and additional rate of 45% (above GBP 125,140). The personal allowance tapers by GBP 1 for every GBP 2 of income above GBP 100,000, reaching zero at GBP 125,140. Dividend income is taxed after all other income and has its own rates: 8.75% (basic), 33.75% (higher), and 39.35% (additional). There is a GBP 500 dividend allowance that is tax-free regardless of your tax band. Self-employed individuals also pay Class 4 NI at 6% on profits between GBP 12,570 and GBP 50,270, and 2% on profits above GBP 50,270. If self-employment profits exceed GBP 12,570, Class 2 NI of GBP 3.45 per week also applies. One of the most important aspects of self assessment is payments on account. HMRC requires two advance payments towards your next year's tax bill, each equal to 50% of the previous year's liability. These are due on 31 January and 31 July, with any remaining balance (the balancing payment) due the following 31 January.
To estimate your self assessment tax bill: 1. Enter your employment income if you have a PAYE job. This is your gross salary before tax. Even though PAYE tax has already been deducted, including it ensures the correct overall tax rate is calculated. 2. Enter your self-employment profit. This is your net profit after deducting allowable business expenses from your turnover. 3. Enter rental income if you receive rent from property. This should be the net profit after deducting allowable expenses such as mortgage interest (at the basic rate restriction), repairs, insurance, and letting agent fees. 4. Enter dividend income if you receive dividends from shares or your own limited company. 5. Enter pension contributions and Gift Aid donations. These reduce your adjusted net income for personal allowance taper purposes and can extend your basic rate band. 6. Review the results. The calculator breaks down your tax into income tax, dividend tax, Class 2 NI, Class 4 NI, and shows the total tax due, payments on account, and your effective overall tax rate.
Self assessment tax is calculated in several stages: 1. Total income: Add all income sources (employment + self-employment + rental + dividends) 2. Personal allowance: GBP 12,570, reduced by GBP 1 for every GBP 2 of adjusted net income above GBP 100,000. Pension contributions and Gift Aid donations reduce your adjusted net income. 3. Income tax on non-dividend income: - 0% on income up to personal allowance - 20% on income from personal allowance to GBP 50,270 - 40% on income from GBP 50,270 to GBP 125,140 - 45% on income above GBP 125,140 4. Dividend tax (after the GBP 500 dividend allowance): - Dividends fill the remaining tax bands after other income - 8.75% in the basic rate band - 33.75% in the higher rate band - 39.35% in the additional rate band 5. Class 2 NI: GBP 3.45/week (GBP 179.40/year) if self-employment profits exceed GBP 12,570 6. Class 4 NI on self-employment profits: - 6% on profits between GBP 12,570 and GBP 50,270 - 2% on profits above GBP 50,270 7. Total tax = Income tax + Dividend tax + Class 2 NI + Class 4 NI 8. Payments on account: Each payment = 50% of total tax due
Inputs: Self-employment profit: GBP 45,000, no other income
Inputs: Employment: GBP 60,000, Rental: GBP 12,000
Inputs: Employment: GBP 30,000, Dividends: GBP 20,000
The self assessment deadline for online returns is 31 January after the end of the tax year. For the 2026-27 tax year, the deadline is 31 January 2028. Paper returns must be filed by 31 October 2027. Missing the deadline incurs an automatic GBP 100 penalty, with additional penalties for extended delays. You can reduce payments on account if you expect your tax bill to be lower than the previous year. This is done by completing form SA303 or adjusting your payment through your HMRC online account. However, if you reduce your payments too much and your actual liability is higher, HMRC will charge interest on the underpayment. Common tax reliefs that reduce your self assessment bill include: pension contributions (tax relief at your marginal rate, which can extend your basic rate band), Gift Aid donations (extend your basic rate band and provide relief at higher rates), the trading allowance (GBP 1,000 for small self-employment income), and the property allowance (GBP 1,000 for small rental income). If you are employed and have a side income under GBP 1,000, you may not need to file a self assessment return at all thanks to the trading allowance. However, if your gross trading income exceeds GBP 1,000 or you have other untaxed income, you must register for self assessment and file a return. Making Tax Digital (MTD) for income tax is being phased in from April 2026 for self-employed individuals and landlords with income over GBP 50,000. This will require quarterly digital reporting instead of an annual return.