Answers · UK 2025/26

How much tax and National Insurance do I pay on £115,000 self-employed profit?

On £115,000 of self-employed taxable profit in 2026/27, you pay £36,432 Income Tax and £3,556.60 Class 4 National Insurance, keeping £75,011.40 after tax and NI.

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

Full answer

For a self-employed sole trader with £115,000 of taxable profit in 2026/27, profit is above £100,000 so the Personal Allowance is tapered: the £15,000 excess above £100,000 cuts the allowance by £7,500, leaving £5,070. Taxable profit is therefore £109,930, with £37,700 taxed at 20% (£7,540) and the remaining £72,230 taxed at 40% higher rate (£28,892), giving total Income Tax of £36,432. Class 4 National Insurance is charged at 6% on profit between £12,570 and £50,270 (£2,262), plus 2% on the £64,730 above £50,270 (£1,294.60), giving £3,556.60. Total deductions leave £75,011.40 after tax and Class 4 National Insurance. At £115,000, the sole trader is inside the £100,000-£125,140 Personal Allowance taper band, where the effective marginal rate on the next pound of profit reaches 62% (40% Income Tax, 2% Class 4 National Insurance, and the lost 20p of allowance taxed again at 40%) -- pension contributions are especially valuable here because they can restore the lost Personal Allowance as well as attracting standard tax relief.