Answers · UK 2025/26

How much tax and National Insurance do I pay on £165,000 self-employed profit?

On £165,000 of self-employed taxable profit in 2026/27, you pay £60,453 Income Tax and £4,556.60 Class 4 National Insurance, keeping £99,990.40 after tax and NI.

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

Full answer

For a self-employed sole trader with £165,000 of taxable profit in 2026/27, profit is above £125,140, so the Personal Allowance is fully withdrawn and the whole £165,000 is taxable. The first £37,700 is taxed at 20% (£7,540), the next £87,440 (up to £125,140) at 40% (£34,976), and the remaining £39,860 above £125,140 at the 45% additional rate (£17,937), giving total Income Tax of £60,453. Class 4 National Insurance is charged at 6% on profit between £12,570 and £50,270 (£2,262), plus 2% on the £114,730 above £50,270 (£2,294.60), giving £4,556.60. Total deductions leave £99,990.40 after tax and National Insurance, just shy of the £100,000 net mark. Self-employed people at this profit level increasingly compare Self Assessment as a sole trader with trading through a limited company, since Corporation Tax at up to 25% followed by dividend tax on extracted profit can sometimes beat Income Tax and Class 4 National Insurance at the additional rate, depending on how much profit is retained in the company each year.