How much tax should I put aside if I’m self-employed?
Figures checked on gov.uk on 26 October 2026
Work out your tax pot
What customers pay you, minus your expenses.
Put aside about
£4,532
- That’s 15% of your profit, or £378 a month
- Income Tax £3,486
- Class 4 National Insurance £1,046
Assumes this is your only income and you claim no other reliefs.
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When you’re self-employed, nobody takes tax off your pay. The whole bill for the year lands on 31 January, so the safest habit is to move a share of every payment into a separate savings account as it comes in.
The short answer: if your profit is under £50,000, putting aside 20% of it covers your Income Tax and National Insurance. Between £50,000 and £100,000, put aside 25% to 30%, and more above that. Profit means what customers pay you, minus your allowable expenses. Here’s where those numbers come from.
What you pay on your profit in 2026 to 2027
Outside Scotland, on profit from your trade:
| Profit | Income Tax | Class 4 National Insurance |
|---|---|---|
| Up to £12,570 | 0% | 0% |
| £12,571 to £50,270 | 20% | 6% |
| £50,271 to £125,140 | 40% | 2% |
| Over £125,140 | 45% | 2% |
The £12,570 tax-free Personal Allowance shrinks by £1 for every £2 you earn over £100,000, and is gone at £125,140. Class 2 National Insurance is £3.65 a week, but if your profit is £7,105 or more it’s treated as paid, so you don’t pay it.
Worked examples
For someone whose only income is their trade, with no student loan or pension payments:
| Profit | Tax and NI | Share of profit |
|---|---|---|
| £20,000 | £1,932 | 10% |
| £35,000 | £5,832 | 17% |
| £55,000 | £11,789 | 21% |
Saving a little more than the share in the table covers a better year than you expected, and anything left over is yours in February.
Watch out for payments on account
Once your bill is £1,000 or more, HMRC also asks for half of next year’s bill up front each January and July. In your first year that can make January’s bill half as big again. See Self Assessment deadlines and payments on account.
If you live in Scotland
Scotland has its own Income Tax rates and bands, with six bands rather than three, so the Income Tax part is different. National Insurance is the same across the UK.
How Kev helps
Kev’s tax summary works this out for you from your paid invoices, expenses and mileage, including Scottish rates if you tick that you live in Scotland. It shows what share of your profit to put aside, and updates as the year goes on.
Sources
This is general guidance, not tax advice. Rules can change, so check gov.uk or ask an accountant about your own situation.
Kev works this out as you go
Kev shows how much tax to put aside from what you’ve earned and spent, so January isn’t a shock. Free plan, no card needed.
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