Answers · UK 2025/26

How much can I earn self-employed before paying tax in 2026/27?

Self-employed people have the same Personal Allowance as employees: £12,570 in 2026/27. No Income Tax is due on profits below this. Class 4 NI (6%) is payable on profits above £12,570. Class 2 NI applies if profits exceed £6,845 (at £3.45/week). Total income-tax-free threshold: £12,570.

Last updated: 20 June 2026Last reviewed: 20 June 2026How we verify

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UK self-employed tax thresholds for 2026/27. Income Tax: the Personal Allowance of £12,570 applies to self-employment profits just as it does to employment income. No Income Tax is due on profits below £12,570. Above £12,570: 20% Income Tax up to £50,270; 40% from £50,271 to £125,140; 45% above. National Insurance for the self-employed: Class 4 NI — 6% on profits between £12,570 and £50,270; 2% on profits above £50,270. The Class 4 threshold aligns with the Personal Allowance, so you start paying both Income Tax and Class 4 NI at the same point. Class 2 NI — £3.45/week if profits exceed the Small Profits Threshold of £6,845/year. Class 2 buys State Pension qualifying years cheaply. If profits are below £6,845, you can pay voluntary Class 2 to maintain State Pension entitlement. Summary of effective tax-free threshold: for Income Tax, £12,570. For Class 4 NI, also £12,570. For Class 2 NI, profits under £6,845 (though you may choose to pay voluntarily). Self-employed people do not receive sick pay, holiday pay, or employer pension contributions automatically — planning for these should be factored into what you pay yourself. File Self Assessment by 31 January following the tax year.