Answers · UK 2025/26

How much tax does a self-employed person pay on £70,000 profit?

A self-employed person with £70,000 taxable profit in 2026/27 pays £15,432 Income Tax and £2,656.60 Class 4 National Insurance, keeping £51,911.40 after tax and NI -- around £754 more than an employee on the same £70,000 gross salary.

Last updated: 3 July 2026Last reviewed: 3 July 2026How we verify

Full answer

On £70,000 taxable profit for 2026/27, Income Tax is calculated the same way as for an employee: taxable income after the £12,570 Personal Allowance is £57,430, with £37,700 taxed at 20% (£7,540) and the remaining £19,730 at 40% (£7,892), giving total Income Tax of £15,432. Class 4 National Insurance is charged at 6% on profits between the £12,570 Lower Profits Limit and the £50,270 Upper Profits Limit (6% of £37,700 = £2,262), plus 2% on profits above the Upper Profits Limit (2% of £19,730 = £394.60), totalling £2,656.60. Combined deductions of £18,088.60 leave £51,911.40 after tax and National Insurance. An employee on a £70,000 salary pays the same £15,432 Income Tax but £3,410.60 employee Class 1 National Insurance (8% up to the Upper Earnings Limit, 2% above), keeping £51,157.40 -- so the self-employed person keeps about £754 more, reflecting the lower National Insurance rates that apply to self-employment. Self-employed higher earners should also budget for payments on account (advance payments toward the next tax year, due 31 January and 31 July) and consider whether incorporating as a limited company and taking a mix of salary and dividends might be more tax-efficient at this profit level.