Tax on £40,000 self-employed

Quick answer

If you're self-employed with a profit of £40,000, your total tax bill for 2026/27 is £7,322 — leaving £32,678 after Income Tax and National Insurance.

Reviewed by TaxFly Editorial Team How we calculate

Total tax & NI

£7,322

you keep £32,678 (81.7%)

Add expenses & payments on account

Profit: £40,000
Income Tax: − £5,486
Class 4 NI: − £1,646
Class 2 NI: − £190
After tax: £32,678

How much tax on £40,000 self-employed?

On a self-employment profit of £40,000, you pay £5,486 Income Tax, £1,646 Class 4 National Insurance and £190 Class 2 NI, a total of £7,322 for 2026/27. That leaves you with £32,678 — 81.7% of your profit.

Profit means your income after allowable business expenses. These figures assume no other income and the standard Personal Allowance — set those on the self-employed tax calculator.

How self-employed tax is worked out

You get a £12,570 tax-free Personal Allowance, then Income Tax on the rest. National Insurance is separate: Class 4 at 6% on profit between £12,570 and £50,270 (2% above), plus a flat Class 2 charge once profit passes the small-profits threshold. Remember to set aside money for payments on account — HMRC asks for next year's tax in advance.

Other profit levels

Tax on £20,000 Tax on £30,000 Tax on £50,000 Tax on £60,000

Frequently asked questions

About £7,322 in total for 2026/27 — £5,486 Income Tax plus £1,836 National Insurance — leaving £32,678.

Yes — it includes Class 4 NI (£1,646) and Class 2 NI (£190) as well as Income Tax.

On profit — your income after allowable business expenses. Deducting more expenses lowers the tax.