£16,000 self-employed after tax

By The PocketSums team. Updated 30 September 2026. How we calculate

With £16,000 of profit you pay £892 in tax and National Insurance and keep £1,259 a month.

You keep
£15,108 a year
A month
£1,259
Set aside for tax
£74 a month
Effective rate
5.6%
£10,000 profit£12,000 profit£14,000 profit£18,000 profit
  • HMRC 2026/27 rates
  • Private: nothing leaves your device
  • Free, no sign-up

You keep£1,259.02a month

£15,108.20 a year. Set aside £74 a month for your tax bill.

Profit £16,000.00
Income tax -£686.00
Class 4 National Insurance -£205.80
You keep £15,108.20

On £16,000 of self-employed profit you pay £686.00 income tax and £205.80 Class 4 National Insurance. You keep £15,108.20, which is £1,259.02 a month.

How the £892 bill is worked out

  1. The first £12,570 is tax free.
  2. £3,430 at the basic rate of 20%: £686.00.
  3. Class 4 National Insurance: 6% of profit between £12,570 and £16,000: £205.80.
Put aside £74 a month and your January tax bill will already be paid for.

£16,000: self-employed, employed or in Scotland

  1. Self-employed£15,108 a year
  2. Employed£15,040 a year
  3. Self-employed, Scotland£15,143 a year

Nearby profits

Contracting? £16,000 a year is about £100 a day over 220 days. Try your own figures in the self-employed tax calculator.

Questions people ask

How much tax do I pay on £16,000 self-employed?

£891.80 in total: £686.00 income tax and £205.80 Class 4 National Insurance, paid through self assessment. You keep £15,108.20.

How much should I save for tax on £16,000?

About £74 a month, or 5.6% of every pound of profit.

Do I keep more self-employed or employed on £16,000?

Self-employed you keep £15,108, employed £15,040, because Class 4 is 6% rather than 8%. Employees also get holiday pay and an employer pension contribution, which usually outweighs the difference.