£40,000 Self-Employed Take-home UK 2026/27
On £40,000 annual profits you keep £32,868 after Income Tax and NI Class 2 / Class 4 — £2,739 a month.
Last updated · Tax year 2026/27
| Profits | £40,000 |
|---|---|
| Personal Allowance used | +£12,570 |
| Income Tax | −£5,486 |
| NI Class 4 | −£1,646 |
| Take-home | £32,868 |
Take-home pay
£32,868
17.8% effective tax rate Income Tax plus employee National Insurance as a percentage of your gross salary. Excludes pension, student loan, and HICBC.
- Monthly
- £2,739
- Weekly
- £632
- Daily
- £126
- Hourly
- £16.86
Your salary in context
ONS · HMRC · CPI
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Take-home profit
After Income Tax and NI, you keep about £32,868 a year — roughly £2,739 a month.
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Self-employed vs employed
At the same gross, self-employed total NI (Class 2 + 4) is typically lower than employee Class 1. Your NI total is £1,646; an employed equivalent would pay more.
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Class 4 NI
Class 4 National Insurance on your profits: £1,646. This covers state pension and benefits. (Main rate 6% from April 2024, was 9%.)
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vs UK median salary
Profits of £40,000 are 7% above the UK median employed salary of £37,430 (ONS ASHE 2024).
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Comparable employed roles
A gross of £40,000 would match employed roles like: NHS Band 7 specialist nurse, mid-level software engineer, police sergeant.
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Income tax paid
Income tax on taxable profits: £5,486. Paid via annual Self Assessment, typically in two payments on account plus a balancing payment.
Frequently asked questions
- What NI classes apply to self-employed people?
- Class 2 (flat weekly) and Class 4 (profit-based). From April 2024, Class 2 is no longer mandatory above the Small Profits Threshold — you still get state-pension credit automatically. You can still pay Class 2 voluntarily if your profits are below the threshold.
- What counts as "profits" here?
- Your turnover minus allowable business expenses. We do not handle capital allowances or loss relief carry-forward — consult an accountant or use HMRC self-assessment for those.
- How is pension relief handled?
- Self-employed pension contributions are typically relieved at source (basic rate 20%) by the provider. Enter the gross contribution to reduce your taxable profits. We don't currently model higher-rate relief claimed via Self Assessment — consult your accountant.
- Does this handle the Marriage Allowance or Blind Person's Allowance?
- Blind Person's Allowance is supported — toggle it under More options. Marriage Allowance transfers are currently only modelled on the salary calculator; it behaves identically here (adjusts PA by £1,260).
- What tax years are supported?
- Currently 2023-24, 2024-25, 2025-26 and 2026-27. 2023-24 uses the old Class 4 9% rate and mandatory Class 2; 2024-25 onwards uses the reduced 6% Class 4 and voluntary-only Class 2.