Income tax for 2026/27
Self-employed people pay income tax on their trading profit — income minus allowable expenses — through Self Assessment. For England, Wales and Northern Ireland:
| Band | Taxable income | Rate |
|---|---|---|
| Personal allowance | up to £12,570 | 0% |
| Basic rate | £12,571 to £50,270 | 20% |
| Higher rate | £50,271 to £125,140 | 40% |
| Additional rate | over £125,140 | 45% |
The personal allowance falls by £1 for every £2 of income over £100,000, reaching zero at £125,140. Scotland sets its own income tax bands.
National Insurance
- Class 4: 6% on profits between £12,570 and £50,270, and 2% above that.
- Class 2: no longer compulsory. You can pay £3.65 a week voluntarily to fill gaps in your National Insurance record.
Class 4 NI = 6% × (profit between £12,570 and £50,270) + 2% × (profit above £50,270)
Example: £45,000 profit
| Income tax (20% on £32,430) | £6,486 |
| Class 4 NI (6% on £32,430) | £1,945.80 |
| You keep | £36,568.20 |
|---|
Paying it
Tax for the year is due by 31 January after the tax year ends. Once your bill is over £1,000, HMRC usually asks for payments on account — two advance payments towards next year's bill, due in January and July. Putting aside a share of every invoice keeps it painless.
Frequently asked questions
How much tax does a self-employed person pay in the UK?
Income tax at 20%, 40% or 45% above the £12,570 personal allowance, plus Class 4 National Insurance at 6% (2% above £50,270) on trading profit.
Do I still have to pay Class 2 National Insurance?
No. Class 2 stopped being compulsory from April 2024. You can still pay it voluntarily to protect your State Pension record.
What counts as trading profit?
Your self-employed income minus allowable business expenses, such as equipment, software and platform fees.
Does this work for Scotland?
Class 4 NI is the same, but Scotland has different income tax bands, so the income tax figure would differ.
Is this tax advice?
No. It's an estimate using 2026/27 rates for England, Wales and Northern Ireland.
TakehomeKit is independent and not affiliated with Fiverr, Upwork, Payoneer, Wise or any other company mentioned. Fees, limits and tax rules change; we check them regularly, but always confirm the final number with the platform or an adviser before you rely on it.