How much should I set aside for tax as a self-employed tradesperson?

How much should I set aside for tax as a self-employed tradesperson? For 2026-27 outside Scotland, putting aside 20% of your profit, not your takings, covers Income Tax and Class 4 National Insurance up to £50,270 profit. Your first tax bill can need about 30%, because of payments on account. Your profit. Income Tax and Class 4 National Insurance are worked out on profit, which is what you take in minus allowable business costs such as materials. A percentage of takings over-saves in a year with high material costs and can under-save in a labour-only year. If your bill is £1,000 or more and 80% or less was collected at source, 31 January brings the whole year's tax plus the first payment on account towards the next year, which is half as much again. That is about 150% of a year's tax at once. No. For 2026-27, if your profits are £7,105 or more, Class 2 is treated as paid to protect your National Insurance record. Below that you can choose to pay voluntary Class 2 at £3.65 a week. Read the full answer, with every source, at rightotax.co.uk.