£20,000 self-employed after tax

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

With £20,000 of profit you pay £1,932 in tax and National Insurance and keep £1,506 a month.

You keep
£18,068 a year
A month
£1,506
Set aside for tax
£161 a month
Effective rate
9.7%
£14,000 profit£16,000 profit£18,000 profit£22,000 profit
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You keep£1,505.68a month

£18,068.20 a year. Set aside £161 a month for your tax bill.

Profit £20,000.00
Income tax -£1,486.00
Class 4 National Insurance -£445.80
You keep £18,068.20

On £20,000 of self-employed profit you pay £1,486.00 income tax and £445.80 Class 4 National Insurance. You keep £18,068.20, which is £1,505.68 a month.

How the £1,932 bill is worked out

  1. The first £12,570 is tax free.
  2. £7,430 at the basic rate of 20%: £1,486.00.
  3. Class 4 National Insurance: 6% of profit between £12,570 and £20,000: £445.80.
Put aside £161 a month and your January tax bill will already be paid for.

£20,000: self-employed, employed or in Scotland

  1. Self-employed£18,068 a year
  2. Employed£17,920 a year
  3. Self-employed, Scotland£18,108 a year

Nearby profits

Contracting? £20,000 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 £20,000 self-employed?

£1,931.80 in total: £1,486.00 income tax and £445.80 Class 4 National Insurance, paid through self assessment. You keep £18,068.20.

How much should I save for tax on £20,000?

About £161 a month, or 9.7% of every pound of profit. Because the bill is over £1,000, your first year may also ask for a payment on account of £966 towards next year.

Do I keep more self-employed or employed on £20,000?

Self-employed you keep £18,068, employed £17,920, because Class 4 is 6% rather than 8%. Employees also get holiday pay and an employer pension contribution, which usually outweighs the difference.