PAYE vs Self-Employed Tax 2025-26
Compare income tax, National Insurance, and take-home pay for employees vs sole traders at every income level. Based on 2025-26 UK tax rates.
Key differences: PAYE vs Self-Employed NI
PAYE vs self-employed — all income levels
| Income | PAYE net | SE net | Difference | |
|---|---|---|---|---|
| £15,000 | £14,320 | £14,189 | PAYE +£131 | Details → |
| £18,000 | £16,480 | £16,409 | PAYE +£71 | Details → |
| £20,000 | £17,920 | £17,889 | PAYE +£31 | Details → |
| £22,000 | £19,360 | £19,369 | SE +£9 | Details → |
| £25,000 | £21,520 | £21,589 | SE +£69 | Details → |
| £28,000 | £23,680 | £23,809 | SE +£129 | Details → |
| £30,000 | £25,120 | £25,289 | SE +£169 | Details → |
| £32,000 | £26,560 | £26,769 | SE +£209 | Details → |
| £35,000 | £28,720 | £28,989 | SE +£269 | Details → |
| £38,000 | £30,880 | £31,209 | SE +£329 | Details → |
| £40,000 | £32,320 | £32,689 | SE +£369 | Details → |
| £42,000 | £33,760 | £34,169 | SE +£409 | Details → |
| £45,000 | £35,920 | £36,389 | SE +£469 | Details → |
| £50,000 | £39,520 | £40,089 | SE +£569 | Details → |
| £55,000 | £42,457 | £43,032 | SE +£575 | Details → |
| £60,000 | £45,357 | £45,932 | SE +£575 | Details → |
| £65,000 | £48,257 | £48,832 | SE +£575 | Details → |
| £70,000 | £51,157 | £51,732 | SE +£575 | Details → |
| £75,000 | £54,057 | £54,632 | SE +£575 | Details → |
| £80,000 | £56,957 | £57,532 | SE +£575 | Details → |
| £90,000 | £62,757 | £63,332 | SE +£575 | Details → |
| £100,000 | £68,557 | £69,132 | SE +£575 | Details → |
Why self-employed take-home is usually higher
Self-employed workers typically take home more than employees at the same income level because Class 4 NI (6%) is lower than employee NI (8%) on earnings between £12,570 and £50,270. The difference narrows at higher incomes because both converge to 2% above £50,270.
However, being self-employed means no employer NI contributions towards your state pension entitlement (Class 4 NI doesn't count towards it — only Class 2 does). You also lose employment rights including statutory sick pay, maternity/paternity pay, and pension auto-enrolment.
Income Tax is exactly the same whether you are employed or self-employed: the same Personal Allowance (£12,570), basic rate (20%), higher rate (40%), and additional rate (45%) apply to both. The only difference is National Insurance. Self-employed workers must file a Self Assessment return by 31 January each year.
Related calculators: