Self-employed tax guide 2026: US and UK rates, deadlines
What a self-employed person owes in the US and UK this year, when to pay, and what to keep.
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If you work for yourself in the US, you owe self-employment tax of 15.3% on net earnings plus income tax. In the UK you pay income tax and Class 4 National Insurance of 6% and 2% through Self Assessment. This guide gives the 2026 figures, the dates, and the records to keep. It is a starting point, not tax advice.
How to use this guide
The numbers below come from the IRS, the Social Security Administration and GOV.UK. Tax rules change each year and depend on your situation, so use this to plan and then check it with your accountant or tax professional before you file. Other countries are covered briefly at the end.
United States: what you owe in 2026
Self-employment tax
Self-employment tax is the Social Security and Medicare you pay yourself because there is no employer paying half. The IRS sets the rate at 15.3%: 12.4% for Social Security and 2.9% for Medicare.
The 12.4% applies only up to a yearly cap. The Social Security Administration sets the 2026 cap at $184,500. Medicare applies to all net earnings, and an additional Medicare tax of 0.9% applies above $200,000 for single filers. You can deduct half of your self-employment tax when you work out your income tax, which softens the hit.
Income tax
Income tax is separate and stacks on top. It uses progressive brackets that the IRS adjusts for inflation each year, and most states add their own tax. Because of that, I will not quote a single "effective rate" as fact. A common planning habit is to set aside roughly 25% to 35% of every payment in a separate account, then adjust once your accountant has run the real numbers. That figure is a rule of thumb, not an IRS number.
Retirement limits for 2026
The IRS announced the 2026 limits in a November 2025 release. The employee deferral limit for 401(k) plans rose to $24,500 from $23,500. The IRA limit rose to $7,500 from $7,000, and the SIMPLE plan limit rose to $17,000 from $16,500.
A solo 401(k) is usually the most flexible option for a self-employed person because you can contribute as both employee and employer. The combined limit and the SEP-IRA rules are in the IRS notice, so confirm them there. Set the plan up before 31 December if you want to contribute for the year.
Quarterly estimated payments
Self-employed people usually pay tax in four instalments during the year instead of one bill in April. The IRS explains that sole proprietors generally have to pay estimated tax if they expect to owe $1,000 or more when they file. You usually avoid the underpayment penalty if you owe less than $1,000 after credits, or if you paid at least 90% of this year's tax or 100% of last year's, whichever is smaller.
The instalments fall in mid-April, mid-June, mid-September and mid-January. If your income is steady, paying 100% of last year's tax in four equal parts is the simplest route.
United Kingdom: what you owe in 2026
Income tax
UK self-employed people report through Self Assessment. For the 2026 to 2027 tax year, GOV.UK lists a standard personal allowance of £12,570, a 20% basic rate from £12,571 to £50,270, and higher rates above that. The allowance shrinks once adjusted net income passes £100,000 and is zero at £125,140 or more. Scotland has its own bands.
National Insurance
You pay two kinds. GOV.UK sets the Class 4 rates for 2026 to 2027 at 6% on profits between £12,570 and £50,270, and 2% above that. Class 2 is no longer compulsory. If your profits are below £7,105 you can choose to pay voluntary Class 2 at £3.65 a week to protect your record, and if profits are above that threshold, Class 2 is treated as paid.
For example, a sole trader with £60,000 of profit pays 6% on £37,700 and 2% on £9,730 in Class 4. That is £2,262 plus £194.60, about £2,457, on top of income tax. Check your own figure with HMRC's calculator.
Deadlines
The online return and the tax you owe are due by 31 January after the tax year ends. GOV.UK gives 31 January 2027 for the current return, and paper returns by 31 October 2026. There is a second payment on account on 31 July if you make advance payments. Late filing brings an automatic penalty that grows over time.
Other countries
Rules differ widely. In France, micro-entrepreneurs pay social contributions as a percentage of revenue. In Germany, self-employed people file income tax and arrange their own health and pension cover. In Spain, autonomos pay a monthly social security contribution and file quarterly. I am not quoting rates here because I could not confirm the current figures on the official sites in time. Check the national tax authority, or a local accountant, for the year you are filing.
If you work from the UAE, there is no personal income tax on most freelance income, but VAT and corporate tax rules can still apply to your business.
The records every freelancer needs
An accountant will ask for the same things in every country. Keep them as you go, not at year end.
- Every invoice you issue, including voided ones, with date, client, amount, currency and status.
- Every payment you receive and which invoice it cleared.
- Every business expense, with receipt, date, category and payee. Software, coworking and training usually count.
- A mileage log if you drive for client work.
- Signed contracts for each project.
- Letters and notices from the tax authority.
The biggest tax-season win is not having to rebuild the year from memory. The cost of that rebuild is in the unpaid admin time freelancers lose. If you work from home, the home office deduction guide covers the rules, and late payers make cash planning harder, so read how to handle late-paying clients.
How Delivvo keeps your records ready for tax time
Delivvo does not file taxes or give tax advice, but it keeps the records an accountant asks for in one place, per client and per project.
- Every quote, contract and invoice is created inside a client and project record, so nothing sits in a scattered inbox.
- Invoices carry sequential numbers in your own format. You can issue credit notes and void an invoice, and the history stays visible.
- Invoices can show a Tax Invoice title and handle reverse charge where it applies. Check which rules apply to you with your accountant.
- Payments arrive in your own gateway, such as Stripe or PayPal, so your payout reports come from the gateway you already use. Delivvo takes 0% of the payment.
- Contracts keep a signing record with a SHA-256 hash, IP address, device and an archived PDF, which is the signed copy your accountant may ask for.
- Every invoice, receipt, contract and quote carries a verification code, so anyone can confirm a document is genuine.
Late-payment reminders at 7, 14 and 30 days go out automatically and stop once the invoice is paid. That matters for the tax calendar, because unpaid invoices are income you may owe tax on before you get the cash.
Free covers 3 clients and 3 active projects with no card, so you can run one tax year of a small practice through it. See how invoices and tax details work and how invoicing fits with the rest of the client cycle.
Read more about how payments work, or start with the CRM and client portal.
FAQ
Do I need to register a company to file taxes as a freelancer?
Not usually. A sole proprietor or sole trader can bill clients and file without a company in the US and UK. Companies exist for liability, retained profit and sometimes lower tax. Talk to a local accountant before you incorporate.
Can I deduct my home office?
In many places, with conditions. The US offers a simplified method or actual expenses, and the UK has flat-rate expense options. Read the current guidance from your tax authority before you claim anything.
Should I open a solo 401(k) before 31 December?
If you have net self-employment income and want to contribute for the year, yes. A solo 401(k) generally has to be set up by 31 December, even if some contributions can be made later. Check the timing with your plan provider.
How much should I set aside for tax?
There is no single number because it depends on income, state or country, and deductions. Many freelancers start with 25% to 35% of each payment and adjust after talking to an accountant.
Delivvo runs the whole client cycle for service businesses, from the first inquiry to the quote, contract, deposit, invoice and delivery, so your invoices, contracts and payments are already organised when tax season arrives. Clients pay you directly through your own gateway, and Delivvo takes 0%. Start free