UK Tax Calculator Tax year 2026/27

Self-Employed After Tax

Take-home profit for self-employed sole traders in 2026/27. £50,000 profit takes home £40,268. Uses Class 4 NI rates (6% main / 2% upper). 2025/26 figures included.

Self-employed sole traders pay Class 4 National Insurance (6% on profit £12,570–£50,270, 2% above) instead of the Class 1 NI that employed workers pay, which often means a higher take-home at the same gross figure. For 2026/27: a £30,000 profit takes home £25,468 (vs £25,119 employed); a £50,000 profit takes home £40,268 (vs £39,520 employed); a £70,000 profit takes home £51,911 (vs £51,157 employed). Select a profit level below to see the full breakdown.

Making Tax Digital for Income Tax

Tools sole traders use

Accounting software that keeps your records ready for Self Assessment and Making Tax Digital.

Affiliate links: we may earn a commission if you sign up, at no extra cost to you.

Frequently asked questions

How much is £50,000 after tax self-employed in the UK?

A self-employed sole trader with £50,000 profit in 2026/27 takes home £40,268 a year (£3,356 a month) after income tax and Class 4 National Insurance. An equivalent employed salary takes home £39,520.

What is Class 4 National Insurance?

Class 4 NI is paid by self-employed sole traders on their profits. For 2026/27 the rate is 6% on profits between £12,570 and £50,270, then 2% above £50,270. Class 2 NI (the flat-rate contribution) is no longer compulsory above the Small Profits Threshold.

Do self-employed people pay more or less tax than employees?

At most profit levels, self-employed sole traders pay slightly less overall tax than employed workers at the same gross figure, because Class 4 NI rates (6%/2%) are lower than Class 1 NI (8%/2%). However, the self-employed receive no employer pension contributions and must budget for Payments on Account.

When do self-employed people pay tax?

Self-employed sole traders pay tax through Self Assessment. The main payment deadline is 31 January after the tax year ends. HMRC also requires Payments on Account (advance payments due 31 January and 31 July) if your previous tax bill exceeded £1,000.