Financial advice for self-employed women
When you work for yourself, nobody else sets up your pension, sick pay or tax. A financial adviser who works with business owners can help you decide how to pay yourself and how much to put away, from the first year onwards.
What an adviser can help with
- Sole trader or limited company
- How to pay yourself, and how much to keep for tax
- Setting up a pension with no employer paying in
- Protecting your income if you can't work
Our advisers work with clients anywhere in the UK, by video or in person.
What to sort out, in the order it usually comes up
Tax rates below are for 2026/27 in England, Wales and Northern Ireland. Scotland sets its own Income Tax bands.
Step 1
Should I be a sole trader or set up a limited company?
- Sole trader: simple to start and cheap to run. You and the business are legally the same, so you are personally responsible for its debts, and you pay Income Tax and National Insurance on the profits.
- Limited company: a separate legal body, so your personal assets are usually protected. It pays Corporation Tax, and you take money out as salary or dividends. There is more paperwork, including annual accounts filed at Companies House.
Many people start as a sole trader and change later. An accountant can compare the tax for your expected profits.
Step 2
How does tax work when you're self-employed?
Register for Self Assessment by 5 October after the end of the tax year in which you started. Then, on your profits for 2026/27:
- Income Tax: nothing on the first £12,570, 20% up to £50,270, 40% up to £125,140 and 45% above.
- Class 4 National Insurance: 6% on profits between £12,570 and £50,270, and 2% above.
- Class 2 National Insurance: no longer has to be paid. Once profits reach £7,105 it is treated as paid, protecting your State Pension record.
The online return and payment are due by 31 January. If last year's bill was £1,000 or more, you also make payments on account in January and July. Making Tax Digital for Income Tax applies from April 2026 if your qualifying income was over £50,000, and from April 2027 if it was over £30,000.
Step 3
How do I keep business and personal money apart?
Use a separate account for the business, even as a sole trader. Move a share of every payment into a savings account for tax, so the January bill isn't a shock.
Keep records of all income and expenses for at least 5 years after the 31 January deadline for that tax year. You must register for VAT if your taxable turnover goes over £90,000 in any 12 months, or you expect it to in the next 30 days alone.
Step 4
What does an employer usually cover that I now have to arrange?
- Pension: there is no employer contribution, but you get tax relief on payments into a personal pension or SIPP, up to £60,000 a year or your earnings if lower.
- Sick pay: there is no Statutory Sick Pay when you are self-employed. Income protection insurance pays a monthly income if illness stops you working.
- Maternity: Maternity Allowance pays up to £194.32 a week, or 90% of average weekly earnings if that's less, for up to 39 weeks.
Step 5
When does a growing business need regulated advice?
An accountant deals with your tax returns and business structure. A financial adviser deals with what you do with the money: how much to pay into a pension, whether a limited company should pay into it for you, what protection to buy, and how to invest profits.
Helena.finance lists FCA-regulated advisers who specialise in advice for women, mainly in the East and South East of England. Search by postcode on our find an adviser page. If you have used Helena, our AI assistant, and saved a Financial Snapshot, you can choose to attach it when you send an enquiry. Helena gives general information, not advice.
Read more about working for yourself
- Do sole traders need a separate business bank account?
No rule says a sole trader must have a separate business account, and GOV.UK does not ask for one. In practice, keeping business money apart makes your records cleaner, your expenses easier to prove and your tax bill easier to plan. A limited company is different: its money legally belongs to the company.
- What pension options do self-employed women have?
Most self-employed women save through a personal pension, a self-invested personal pension (SIPP) or a stakeholder pension. Each gets tax relief: pay in £80 and the provider claims £20 from HMRC. Relief is limited to your earnings for the year, and the £60,000 annual allowance caps total pension saving before a tax charge.
- How much tax do sole traders pay in the UK?
In 2026/27 a sole trader pays Income Tax on profits above the £12,570 Personal Allowance: 20% up to £50,270, 40% up to £125,140 and 45% above that, with different bands in Scotland. Class 4 National Insurance adds 6% on profits from £12,570 to £50,270 and 2% above. Both are paid through Self Assessment.
- How do you budget on an irregular self-employed income?
Base your personal budget on what a lean month brings in, rather than an average one. Pay yourself a fixed amount from the business account each month, move tax into a separate savings account as money arrives, and let a cash buffer absorb the gaps. Plan separately for illness, as self-employed people get no Statutory Sick Pay.
- Can you get maternity pay if you're self-employed?
Yes, through Maternity Allowance rather than Statutory Maternity Pay. In 2026/27 a self-employed woman gets between £27 and £194.32 a week for up to 39 weeks. The amount depends on your Class 2 National Insurance record in the 66 weeks before your baby is due. You can claim once you are 26 weeks pregnant.
- How do you plan to sell or close your business?
Start a few years before you want to stop. Decide whether you will sell, close or pass the business on, and make it run without you if you hope to sell. On a sale, Capital Gains Tax applies, and Business Asset Disposal Relief can cut the rate to 18% in 2026/27. Keep building a pension alongside it.
- Do self-employed people get a State Pension?
Yes. Self-employed people get the same new State Pension as employees, worth up to £241.30 a week. What counts is your National Insurance record: 35 qualifying years for the full amount, 10 for any at all. Class 2 contributions build that record. Class 4, the main tax on profits, does not.
Checklist
12 practical things to do, which you can tick off as you go.
Open the self-employed checklistCalculators
- Maternity Allowance CalculatorMaternity pay when you work for yourself
- Emergency Fund CalculatorSize your safety net and see how long it takes to build
- Budget PlannerSplit your monthly take-home pay across needs, wants and savings
Common questions
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Financial advisers by area
Norwich, Ipswich, Cambridge, Colchester, Chelmsford, Stevenage, Milton Keynes, Northampton, Peterborough, Leicester, Coventry, Brighton, Tonbridge, Guildford, Portsmouth, Southampton, North London, South West London.
What is the difference between a sole trader and a limited company?
A sole trader and the business are legally the same, so you're personally responsible for its debts and pay Income Tax on the profits. A limited company is a separate legal body that usually protects your personal assets. It pays Corporation Tax and has more accounting and filing duties, including annual accounts at Companies House.
How much should I set aside for tax when self-employed?
It depends on your profit. In 2026/27 you pay no Income Tax on the first £12,570, then 20% up to £50,270, plus 6% Class 4 National Insurance on profits in that band. So a basic-rate sole trader outside Scotland pays about 26p on each pound above £12,570. Save more if payments on account apply.
When do I have to register for VAT?
When your VAT-taxable turnover goes over £90,000 in any rolling 12 months, or you expect it to go over £90,000 in the next 30 days alone. You can register voluntarily below that. The test is turnover, not profit, so a business with high costs can reach it sooner than expected.
Can I get maternity pay if I'm self-employed?
Yes, through Maternity Allowance rather than Statutory Maternity Pay. In 2026/27 it pays up to £194.32 a week, or 90% of your average weekly earnings if that's less, for up to 39 weeks. You claim it from the DWP, and the amount depends on your earnings and National Insurance record.
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