Answers · UK 2025/26

How much tax and National Insurance does a self-employed person pay on £26,000 profit?

A self-employed person with £26,000 taxable profit in 2026/27 pays £2,686 Income Tax and £805.80 Class 4 National Insurance, keeping £22,508.20 after tax and NI -- around £886 more than an employee on the same £26,000 gross salary, because there is no employee Class 1 National Insurance to pay.

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

Full answer

On £26,000 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 £13,430, entirely within the 20% basic rate band, giving £2,686 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 £13,430 is £805.80. Class 2 National Insurance was abolished for most self-employed people from April 2024, though voluntary payments remain available below the £7,105 Small Profits Threshold. Combined deductions of £3,491.80 leave £22,508.20 after tax and National Insurance. An employee on a £26,000 salary pays the same £2,686 Income Tax but £1,074.40 employee Class 1 National Insurance (8% of the same £13,430), keeping £22,239.60 -- so the self-employed person keeps about £268.60 more, reflecting the lower National Insurance rate that applies to self-employment. This gap widens further at higher profit levels, since Class 4 NI drops to 2% above the Upper Profits Limit compared with an employee's 2% Class 1 rate above the equivalent threshold -- broadly similar at the margin, but the self-employed person continues to benefit from the lower 6% versus 8% main rate on income within the standard band. Self-employed tax and NI at this profit level is normally paid through Self Assessment by 31 January following the tax year.