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Scotland Self-Employed Tax Calculator (2026-27)

Work out what you keep as a sole trader or freelancer in 2026/27: Income Tax, Class 4 National Insurance and student loans on your profits, how much to set aside each month, and the employee salary it is worth.

Updated for the 2026-27 tax year · Rates checked 14 October 2026

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More options
Take-home pay per year£43,801
Income (revenue)£60,000
Trading allowance£1,000
Profit£59,000
Income Tax (Scottish rates)£12,762
Class 4 National Insurance£2,437
Take-home pay£43,801
Total tax£15,199
Tax as % of profit25.8%
Set aside each month£1,267
Take-home per billable hour£31.74
Equivalent employee salary£60,346
  • On £59,000 of profit in Scotland you keep £43,801 a year (£3,650 a month) after tax.
  • To take home the same as an employee you’d need a salary of about £60,346.
  • We used the £1,000 trading allowance instead of your £0 of expenses because it is larger.
  • Your Self Assessment bill is over £1,000, so HMRC will usually ask for payments on account: half of next year’s estimated bill each January and July.

Your result, explained

Your £60,000 of client income becomes £59,000 of profit after expenses, and you keep £43,801 after £15,199 of tax, 25.8% of profit. Nobody withholds that tax for you, so move about £3,800 into a separate tax account every quarter (£1,267 a month).

To take home the same as an employee you would need a salary of about £60,346. But employees also get paid leave, retirement contributions and often health cover, so most freelancers aim to charge 25–40% more than that. At your billable hours you currently keep £31.74 per hour worked.

Your money by period

PerProfitTaxTake-home
Year£59,000£15,199£43,801
Quarter£14,750£3,800£10,950
Month£4,917£1,267£3,650
Week£1,135£292.28£842.33

Popular amounts in Scotland

How sole traders are taxed

You pay Income Tax on your profits (income minus allowable expenses) at the same rates as employees: 20%, 40% and 45% above the £12,570 Personal Allowance (Scottish rates in Scotland). Instead of employee NI you pay Class 4 National Insurance: 6% on profits between £12,570 and £50,270, and 2% above. With profits of £7,105 or more, Class 2 is treated as paid, so your State Pension record is protected at no cost.

The £1,000 trading allowance

If your expenses are under £1,000 you can deduct a flat £1,000 trading allowance instead. Income under £1,000 is tax-free and doesn’t need to be reported. The calculator picks whichever is better automatically.

Paying the tax: Self Assessment

You file a Self Assessment return by 31 January after the tax year ends and pay the balance then. If your bill is over £1,000 you’ll usually also make payments on account: two advance payments towards next year’s bill, each half of this year’s, due 31 January and 31 July. Setting aside the monthly amount above avoids a nasty January surprise.

Frequently asked questions

Do self-employed people pay less National Insurance?

Yes. Class 4 is 6% on profits between £12,570 and £50,270, compared with 8% for employees. That’s why the matching employee salary shown above is higher than your profit.

What expenses can I claim?

Costs that are wholly and exclusively for the business: equipment, software, a share of home running costs, business travel, professional fees, insurance and more. You can’t claim personal or entertaining costs.

When should I register as self-employed?

If you earn more than £1,000 from self-employment in a tax year, register with HMRC by 5 October after the end of that tax year.

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