Answers · UK 2025/26

How much tax and National Insurance do I pay on £60,000 self-employed profit?

On £60,000 of self-employed taxable profit in 2026/27, you pay £11,432 Income Tax and £2,456.60 Class 4 National Insurance, keeping £46,111.40 after tax and NI.

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

Full answer

For a self-employed sole trader with £60,000 of taxable profit in 2026/27, taxable income of £47,430 (after the £12,570 Personal Allowance) spans both the basic and higher rate bands: £37,700 at 20% gives £7,540, and the remaining £9,730 at 40% gives £3,892, for total Income Tax of £11,432. Class 4 National Insurance is charged at 6% on profits between the £12,570 Lower Profits Limit and the £50,270 Upper Profits Limit, and 2% on profits above £50,270. On the £37,700 within the 6% band, Class 4 NI is £2,262, and on the £9,730 above £50,270, it is £194.60 at 2%, giving total Class 4 National Insurance of £2,456.60. Total deductions of £13,888.60 leave the self-employed person with £46,111.40 after tax and National Insurance. At this profit level, crossing the £50,270 threshold means part of the profit is taxed at the 40% higher rate alongside a reduced 2% (rather than 6%) Class 4 National Insurance rate on the same slice, giving a combined marginal deduction of 42% on profit above £50,270, compared with 26% (20% Income Tax plus 6% Class 4 NI) below that threshold. Many self-employed people at this profit level consider incorporating as a limited company, since Corporation Tax (19% up to £50,000 profit) combined with dividend tax on withdrawals can sometimes be more tax-efficient than Self Assessment, though this depends heavily on individual circumstances and how much profit is retained in the company.