Self-Employed

How Much Tax to Set Aside When Self-Employed (2026/27)

As a self-employed sole trader, set aside roughly 20-25% of profit if you are a basic-rate taxpayer, 35-40% if higher-rate, and more once profit passes GBP 100,000. But your first bill is around 1.5x one year of tax, because HMRC adds payments on account.

1

First GBP 12,570 of profit - 0% Income Tax, 0% Class 4 NI - Nothing on this slice

2

GBP 12,570 to GBP 50,270 - 20% + 6% = 26% on this slice - 20-25% of total profit

3

GBP 50,270 to GBP 100,000 - 40% + 2% = 42% on this slice - 30-35% of total profit

4

GBP 100,000 to GBP 125,140 - 60%+ effective (Personal Allowance taper) + 2% - 40%+ of total profit

5

Plus 3 more in the full guide

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