£40,000 profit self-employed: take-home 2026/27
Breakdown at £40,000 profit
| England | Scotland | |
|---|---|---|
| Profit | £40,000.00 | £40,000.00 |
| Income Tax | £5,486.00 | £5,551.07 |
| Class 4 National Insurance | £1,645.80 | £1,645.80 |
| Take-home per year | £32,868.20 | £32,803.13 |
| Take-home per month | £2,739.02 | £2,733.59 |
The England figures also apply in Wales and Northern Ireland. No Class 2 is due. Your profit is above the £7,105 threshold, so the year counts for your State Pension. Student loans add 9% of income above your plan threshold, for example Plan 2 above £29,385.
When you pay it
The bill is over £1,000, so payments on account apply: £3,565.90 on 31 January and £3,565.90 on 31 July towards next year. In your first year of trading the January payment is the whole year's £7,131.80 plus the first payment on account, £10,697.70 in one go. More in the payments on account guide.
As a limited company instead
Paying yourself £12,570 salary and the rest as dividends, a company with the same £40,000 profit would leave you £31,632.70: £1,235.50 less than as a sole trader, after £4,995.96 corporation tax and £2,235.84 dividend tax. Try other options in the limited company calculator.
Have a job as well, expenses to enter or a student loan? Use the self-employed tax calculator.
Other profit levels
Frequently asked questions
How much tax do I pay on £40,000 self-employed profit?
£7,131.80 in 2026/27 with no other income: £5,486.00 Income Tax and £1,645.80 Class 4 NI. In Scotland it is £7,196.87.
How much should I put aside each month?
About £594.32 a month, or 18% of every payment you receive.
Is this before or after expenses?
After. Profit is your income minus allowable business expenses. Tax is only charged on profit.
Calculated with 2026/27 HMRC rates: Personal Allowance £12,570, Class 4 at 6% and 2%, Scottish bands for Scottish taxpayers. Updated 2026-11-04. General information, not tax advice.