How much tax do self-employed people pay in 2025-26?

Self-employed pay Income Tax (same bands as employees), Class 2 NI (if profits > £12,570) and Class 4 NI: 6% on profits £12,570-£50,270 and 2% above.

What expenses can I deduct as self-employed?

Allowable expenses include office costs, travel, equipment, marketing, professional fees, and pension contributions. Personal expenses are not deductible.

Do I need to register for Self Assessment?

Yes. If self-employed income exceeds £1,000 you must register with HMRC by 5 October following the tax year and file a Self Assessment return.

Self-Employed Tax 2025-26, Sole Trader After Tax

Select your annual profit to see Income Tax, Class 2 NI, and Class 4 NI deductions. All figures use 2025-26 UK self-employment tax rates.

Self-employed NIC 2025-26

Class 2 NI

£3.45/week = £179/yr (if profit > £12,570)

Class 4 NI (lower)

6% on profit £12,570-£50,270

Class 4 NI (upper)

2% on profit above £50,270

Income Tax

Same as employed (20%/40%/45%)

Under £30,000 profit

£6,000 profit £6,000 £7,000 profit £7,000 £8,000 profit £8,000 £9,000 profit £9,000 £10,000 profit £10,000 £12,000 profit £12,000 £12,570 profit £12,570 £14,000 profit £13,449 £15,000 profit £14,189 £16,000 profit £14,929 £17,000 profit £15,669 £18,000 profit £16,409 £19,000 profit £17,149 £20,000 profit £17,889 £21,000 profit £18,629 £22,000 profit £19,369 £23,000 profit £20,109 £24,000 profit £20,849 £25,000 profit £21,589 £26,000 profit £22,329 £27,000 profit £23,069 £28,000 profit £23,809 £29,000 profit £24,549

£30,000-£60,000 profit

£30,000 profit £25,289 £31,000 profit £26,029 £32,000 profit £26,769 £33,000 profit £27,509 £34,000 profit £28,249 £35,000 profit £28,989 £36,000 profit £29,729 £37,000 profit £30,469 £38,000 profit £31,209 £39,000 profit £31,949 £40,000 profit £32,689 £41,000 profit £33,429 £42,000 profit £34,169 £43,000 profit £34,909 £44,000 profit £35,649 £45,000 profit £36,389 £46,000 profit £37,129 £48,000 profit £38,609 £50,000 profit £40,089 £52,000 profit £41,292 £55,000 profit £43,032 £58,000 profit £44,772 £60,000 profit £45,932

Above £60,000 profit

£65,000 profit £48,832 £70,000 profit £51,732 £75,000 profit £54,632 £80,000 profit £57,532 £85,000 profit £60,432 £90,000 profit £63,332 £95,000 profit £66,232 £100,000 profit £69,132 £110,000 profit £72,932 £120,000 profit £76,489 £125,000 profit £78,014 £130,000 profit £80,632 £140,000 profit £85,932 £150,000 profit £91,232

How self-employed tax works in the UK 2025-26

If you are self-employed (sole trader, freelancer, or contractor outside IR35), you pay Income Tax and National Insurance via Self Assessment. Income Tax rates are identical to employed workers: 20% basic rate, 40% higher rate, 45% additional rate, with the same £12,570 Personal Allowance.

National Insurance for the self-employed is different. You pay Class 2 NI at £3.45/week (£179/year) if your profit exceeds the Small Profits Threshold (£12,570), and Class 4 NI at 6% on profits between £12,570 and £50,270, and 2% above £50,270. This is lower than employee NI (8%/2%) but there is no employer contribution. Compare PAYE vs self-employed to see the full difference.

Self-employed tax is paid by 31 January each year via Self Assessment. You may also need to make payments on account (50% advance) by 31 July. Pension contributions are fully deductible and reduce your tax bill.