See exactly how much Income Tax and National Insurance you owe as a self-employed sole trader. Free, instant, no signup required.
Type your estimated profit (turnover minus expenses) and we will calculate your Income Tax, National Insurance, and take-home pay instantly.
How It Works
As a sole trader, you pay Income Tax on your profits (not your turnover). You get a tax-free Personal Allowance of £12,570, then pay 20% basic rate, 40% higher rate, and 45% additional rate on the rest. If you earn over £100,000, your Personal Allowance is gradually reduced.
Sole traders pay Class 4 NICs on profits: 6% on profits between £12,570 and £50,270, and 2% on anything above that. Class 2 NICs are now auto-credited for most, so there is typically no separate charge, but they still count towards your State Pension.
The lower your taxable profit, the less tax you pay. That means tracking every allowable business expense: office costs, travel, professional subscriptions, phone bills, and more. If you are not already tracking these, you are probably overpaying.
From April 2026, sole traders earning over £50,000 must keep digital records and submit quarterly updates to HMRC. QuarterlyUK helps you stay compliant for just £2.50/month.
This calculator provides estimates based on published HMRC tax rates and thresholds. It is intended as a guide only and does not constitute tax advice. Your actual tax liability may differ based on your individual circumstances. For professional tax advice, consult a qualified accountant or tax adviser.