Answers · UK 2025/26
How much can self-employed people earn tax-free in 2026/27?
Self-employed individuals can earn up to £12,570 tax-free (the Personal Allowance). The £1,000 trading allowance applies before that if gross income is below £1,000.
Full answer
In 2026/27, all UK taxpayers including the self-employed benefit from the Personal Allowance of £12,570, meaning the first £12,570 of profit is free of income tax. There is also a £1,000 annual trading allowance: if your gross self-employment income is £1,000 or less, you pay no tax and do not need to register for Self Assessment. Class 4 NI starts on profits above £12,570 at 6%. Class 2 NI of £3.45/week (£179.40/year) is payable if profits exceed the small profits threshold of £6,725. The Personal Allowance tapers away by £1 for every £2 of adjusted net income above £100,000, disappearing entirely at £125,140.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.