Answers · UK 2025/26

How much tax and National Insurance does a self-employed electrician pay on £45,000 profit?

A self-employed electrician with £45,000 taxable profit in 2026/27 pays £6,486 Income Tax and £1,945.80 Class 4 National Insurance, keeping £36,568.20 after tax and NI. Class 2 National Insurance is abolished for most self-employed people, so no separate Class 2 charge applies as long as profits are above the £7,105 small profits threshold.

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

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Self-employed tradespeople, including electricians, pay Income Tax on their trading profit (income minus allowable business expenses, such as tools, van costs, materials and insurance) in exactly the same bands as employees, but pay Class 4 National Insurance instead of employee Class 1 NI, and typically settle their bill through Self Assessment rather than PAYE. On £45,000 taxable profit for 2026/27: after the £12,570 Personal Allowance, £32,430 is taxable, all within the 20% basic rate band, giving £6,486 Income Tax. Class 4 National Insurance is charged at 6% on profits between the £12,570 Lower Profits Limit and the £50,270 Upper Profits Limit, so 6% of £32,430 = £1,945.80. Class 2 National Insurance was abolished for most self-employed people from April 2024, though anyone with profits below the £7,105 Small Profits Threshold can still pay it voluntarily to protect their State Pension record. Total deductions of £8,431.80 leave £36,568.20 after tax and National Insurance. Remember that a self-employed electrician also needs to set aside money for the following January's payment on account if their tax bill exceeds £1,000, and should keep records of all deductible expenses to arrive at the £45,000 profit figure in the first place.