Written and reviewed by James Whitfield · Updated for 2026/27 · Editorial standards · Methodology
How much self-employed tax to put aside each quarter in 2026/27, with a table from £20,000 to £100,000 profit, how payments on account work on 31 January and 31 July, the 150% first-year bill, and what Making Tax Digital quarterly updates do (and do not) change.
Put aside a quarter of your yearly income tax and Class 4 NI bill every three months. For 2026/27 profit above £12,570 is taxed at 20% plus 6% Class 4 NI, and at 40% plus 2% above £50,27012. On £40,000 profit the bill is £7,131.80, so set aside £1,782.95 a quarter (£594.32 a month). HMRC collects it on 31 January and 31 July as payments on account of half last year's bill each4. Making Tax Digital quarterly updates are reports, not payments.
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Typical default outputs for quick context.
Self-employed people pay income tax and Class 4 National Insurance on profit, not turnover. For 2026/27 the first £12,570 of profit is tax-free, profit from £12,570 to £50,270 is taxed at 20% with 6% Class 4 NI, and profit above £50,270 is taxed at 40% with 2% NI12. Class 2 NI is no longer compulsory, so it is not part of the bill.
The simplest rule is to put a quarter of your expected yearly bill aside every three months. On £40,000 profit the bill is £5,486.00 income tax plus £1,645.80 Class 4 NI, £7,131.80 in total, so you set aside £1,782.95 a quarter or £594.32 a month. Keep it in a separate savings account so it is not spent as cash flow.
| Profit | Income tax | Class 4 NI | Yearly bill | Per quarter | Per month | Share of profit |
|---|---|---|---|---|---|---|
| £20,000 | £1,486.00 | £445.80 | £1,931.80 | £482.95 | £160.98 | 9.7% |
| £30,000 | £3,486.00 | £1,045.80 | £4,531.80 | £1,132.95 | £377.65 | 15.1% |
| £40,000 | £5,486.00 | £1,645.80 | £7,131.80 | £1,782.95 | £594.32 | 17.8% |
| £50,000 | £7,486.00 | £2,245.80 | £9,731.80 | £2,432.95 | £810.98 | 19.5% |
| £60,000 | £11,432.00 | £2,456.60 | £13,888.60 | £3,472.15 | £1,157.38 | 23.1% |
| £75,000 | £17,432.00 | £2,756.60 | £20,188.60 | £5,047.15 | £1,682.38 | 26.9% |
| £100,000 | £27,432.00 | £3,256.60 | £30,688.60 | £7,672.15 | £2,557.38 | 30.7% |
Scottish taxpayers pay Scottish income tax rates on profit: slightly less than this below about £33,000 of profit and more above it. Student loan repayments due through Self Assessment are extra and are not part of payments on account.
Saving quarterly is a habit, not an HMRC deadline. Self Assessment tax is paid twice a year. On 31 January after the tax year ends you pay any balancing payment for that year plus the first payment on account for the current year; on 31 July you pay the second payment on account3.
Each payment on account is half of the previous year's income tax and Class 4 NI bill4. If you earned the same profit two years running, the two payments cover the whole bill and the January balancing payment is nil. If profit rises, the balancing payment makes up the difference; if it falls, you can ask HMRC to reduce your payments on account.
In your first year of self-employment there are no payments on account, because there is no previous bill to base them on. That makes the first 31 January payment the biggest: the whole of the first year's bill, plus the first payment on account for the second year. If your profit is similar in both years, that is roughly 150% of one year's tax due on one date.
Someone who started trading in April 2026 registers for Self Assessment by 5 October 2027, files the 2026/27 return by 31 January 2028 and pays on that date. Putting tax aside quarterly from the first invoice is what stops that bill becoming a problem.
| Profit | Year-one bill | Due first 31 January (bill + first payment on account) | Due the following 31 July |
|---|---|---|---|
| £30,000 | £4,531.80 | £6,797.70 | £2,265.90 |
| £50,000 | £9,731.80 | £14,597.70 | £4,865.90 |
| £75,000 | £20,188.60 | £30,282.90 | £10,094.30 |
From 6 April 2026, sole traders and landlords whose qualifying income (gross self-employment and property income before expenses) was over £50,000 in 2024/25 must use Making Tax Digital for Income Tax. The threshold falls to £30,000 from April 2027 and £20,000 from April 20285.
MTD means keeping digital records and sending HMRC a summary of income and expenses every quarter through compatible software, then a final declaration after the year end. For 2026/27 the quarterly updates are due on 7 August 2026, 7 November 2026, 7 February 2027 and 7 May 20276. They are information returns: no tax is paid with them. Payment dates stay at 31 January and 31 July.
The useful side effect is that your software shows an in-year tax estimate after each update. Comparing it with the money you have set aside each quarter is the easiest way to see whether you are saving enough.
Current tax-year thresholds used across this guide and calculator.
About a quarter of your yearly income tax and Class 4 NI each quarter. In 2026/27 that is roughly 15% of profit at £30,000, 19% at £50,000 and 27% at £75,000 in England. On £40,000 profit that is £1,782.95 a quarter.
No. Tax is paid twice a year, on 31 January and 31 July, through Self Assessment payments on account. Making Tax Digital for Income Tax adds quarterly updates from April 2026 for those with qualifying income over £50,000, but these are reports of income and expenses, not payments.
Two advance payments towards the current year's tax, due 31 January and 31 July, each half of the previous year's income tax and Class 4 NI bill. They are not required if last year's bill was under £1,000 or more than 80% of your tax was deducted at source.
Because the first 31 January payment covers the whole of your first year's tax plus the first payment on account for the next year, roughly 150% of one year's bill if profit stays level. There are no payments on account during your first year.
7 August 2026, 7 November 2026, 7 February 2027 and 7 May 2027, for quarters ending 5 July, 5 October, 5 January and 5 April. No tax is paid with them.
From 6 April 2026, sole traders and landlords with qualifying income over £50,000 (based on 2024/25). The threshold drops to £30,000 from April 2027 and £20,000 from April 2028. Qualifying income is gross self-employment and property income before expenses.
The rates, thresholds and rules on this page are drawn from the official UK government sources below, using the confirmed 2026/27 figures. Each link opens the relevant HMRC or GOV.UK page in a new tab.
Verified against published UK government guidance for 2026/27.