United Kingdom · 2025/26 · Self-employed / sole trader

Self-employed tax & payments on account

Work out your Self Assessment as a sole trader — income tax, Class 4 National Insurance, your payments on account, and how it compares to being employed.

💡 Sole traders pay income tax + Class 4 NIC through Self Assessment, usually via two "payments on account" (31 Jan and 31 Jul). Good news: self-employed NIC (6%) is now lower than employee NIC (8%). Estimate for 2025/26; verify at GOV.UK.

Your numbers

Profit (after expenses) your taxable self-employed profit

Other income e.g. a salary, optional

Self-employed vs employee — same pay

On the same gross, here's the take-home as a sole trader versus as a PAYE employee.