How much tax will I pay on my profit?
These are the totals for a sole trader in England, Wales or Northern Ireland with no other income and no student loan, using the same sums as our tax set-aside calculator. Profit means your takings minus allowable business costs.
Income tax and Class 4 National Insurance on self-employed profit, 2026/27, England, Wales and Northern Ireland. No other income, no student loan.
| Profit | Income tax | Class 4 NI | Total | Share of profit | Put aside a month |
|---|---|---|---|---|---|
| £15,000 | £486 | £145.80 | £631.80 | 4.2% | £53 |
| £20,000 | £1,486 | £445.80 | £1,931.80 | 9.7% | £161 |
| £25,000 | £2,486 | £745.80 | £3,231.80 | 12.9% | £270 |
| £30,000 | £3,486 | £1,045.80 | £4,531.80 | 15.1% | £378 |
| £40,000 | £5,486 | £1,645.80 | £7,131.80 | 17.8% | £595 |
| £50,000 | £7,486 | £2,245.80 | £9,731.80 | 19.5% | £811 |
| £60,000 | £11,432 | £2,456.60 | £13,888.60 | 23.1% | £1,158 |
| £80,000 | £19,432 | £2,856.60 | £22,288.60 | 27.9% | £1,858 |
The last column is the total divided by twelve: roughly what to move into a separate account each month so the bill is covered when it lands. If you already have a job taxed through PAYE, or you repay a student loan, your figures will be higher. Put them into the calculator to see your own.
Income tax rates for 2026/27
Everyone gets a personal allowance of £12,570 before income tax starts. It shrinks by £1 for every £2 of income over £100,000, so it's gone completely by £125,140.
| Band (England, Wales, Northern Ireland) | Rate | Applies to |
|---|---|---|
| Basic rate | 20% | The first £37,700 above your personal allowance |
| Higher rate | 40% | Income above that, up to £125,140 |
| Additional rate | 45% | Income over £125,140 |
Wales sets its own rates but has kept them the same as England's. Scotland's are different:
| Band (Scotland) | Rate | On taxable income above the allowance |
|---|---|---|
| Starter | 19% | Up to £3,967 |
| Basic | 20% | Up to £16,956 |
| Intermediate | 21% | Up to £31,092 |
| Higher | 42% | Up to £62,430 |
| Advanced | 45% | Up to £125,140 of income |
| Top | 48% | Income over £125,140 |
Here's the Scottish version of the table above:
Income tax and Class 4 National Insurance on self-employed profit, 2026/27, Scotland. No other income, no student loan.
| Profit | Income tax | Class 4 NI | Total | Share of profit | Put aside a month |
|---|---|---|---|---|---|
| £15,000 | £461.70 | £145.80 | £607.50 | 4.1% | £51 |
| £20,000 | £1,446.33 | £445.80 | £1,892.13 | 9.5% | £158 |
| £25,000 | £2,446.33 | £745.80 | £3,192.13 | 12.8% | £267 |
| £30,000 | £3,451.07 | £1,045.80 | £4,496.87 | 15% | £375 |
| £40,000 | £5,551.07 | £1,645.80 | £7,196.87 | 18% | £600 |
| £50,000 | £8,982.05 | £2,245.80 | £11,227.85 | 22.5% | £936 |
| £60,000 | £13,182.05 | £2,456.60 | £15,638.65 | 26.1% | £1,304 |
| £80,000 | £21,732.05 | £2,856.60 | £24,588.65 | 30.7% | £2,050 |
Which National Insurance do self-employed people pay?
Class 4 is the one that costs you money. It's 6% of profit between £12,570 and £50,270, and 2% on profit above that. It's paid with your income tax through self-assessment, and it's the same in every part of the UK.
Class 2 isn't charged any more. If your profit is £7,105 or more, HMRC treats it as paid, so the year still counts towards your State Pension. If your profit is lower, nothing is charged, but you can pay voluntarily at £3.65 a week to keep your record complete. That's worth checking in a quiet year, because a full State Pension needs 35 qualifying years.
What if I have a job as well?
Your wages use up your personal allowance first, through your tax code. Your self-employed profit is then taxed from where your wages stop, so it can fall straight into the 20% band or even the 40% band. Class 4 is still worked out on the self-employed profit alone.
The tax set-aside calculator takes your wages into account if you enter them.
When is the tax paid?
Not as you go. You pay it through self-assessment after the tax year ends: the bill for 2026/27 is due by 31 January 2028. Once your bill is over £1,000, HMRC also asks for payments on account towards the next year, which is why the first January bill is often the biggest.
If you work under the Construction Industry Scheme, the 20% your contractors take off is counted towards this bill, and many subcontractors get money back. See CIS tax refunds.
Common questions
Do I pay tax on everything I invoice?
No. Tax is worked out on profit: what customers paid you minus allowable business costs such as materials, van costs, tools and insurance. A self-employed plumber who invoices a lot but spends heavily on parts can owe less than someone who invoices less with few costs.
Do I still pay Class 2 National Insurance?
No. Since April 2024 nobody has to pay it. If your profit is at least £7,105, you get the credit towards your State Pension anyway. Below that you can choose to pay £3.65 a week to protect your record.
Is the tax different in Scotland?
Income tax is. Scotland has six bands, from 19% to 48%, so Scottish taxpayers on lower profits pay slightly less than in England and those on higher profits pay more. Class 4 National Insurance is the same across the UK.
What tax rate do I use for a quick estimate?
For profits between the personal allowance and £50,270, every extra pound of profit costs about 20% in income tax plus 6% in National Insurance. Above that, it's 40% plus 2%.
More guides
- Self-assessment deadline: 31 January 2027
- Payments on account: why your January tax bill is bigger than you expected
- Making Tax Digital for sole traders and landlords
- CIS tax refunds: claiming back deductions
Sources
- Income Tax rates and Personal Allowances, GOV.UK. Checked 28 Oct 2026
- Scottish Income Tax rates, GOV.UK. Checked 28 Oct 2026
- Self-employed National Insurance rates, GOV.UK. Checked 28 Oct 2026
- Income Tax rates: income over £100,000, GOV.UK. Checked 28 Oct 2026
- The new State Pension: what you'll get, GOV.UK. Checked 28 Oct 2026
Spotted something out of date? Email [email protected] and we'll check it within two working days.