Self-Employment Tax

Self-employment tax covers Social Security and Medicare for freelancers who pay both employee and employer portions. In the UK, Class 2 and Class 4 NI applies.

1. 1US: SE tax = Net profit × 15.3% (SS 12.4% + Medicare 2.9%)
2. 2Deduct half of SE tax from taxable income
3. 3UK Class 4 NI: 9% on profits £12,570–£50,270
4. 4Quarterly estimated payments required in the US