Sole trader tax calculator
2026/27 rates for England, Wales and Northern Ireland. Scottish income tax bands differ.
- Personal allowance£12,570
- Income tax£6,486.00
- Class 4 National Insurance£1,945.80
- Total tax and NIC£8,431.80
- Effective rate18.7%
Take-home after tax
£36,568
Want this result by email?
We will send your figures and a short note on what to check. A bookkeeper may follow up if you ask a question.
How does the sole trader tax calculator work?
A sole trader pays income tax on profit above the £12,570 personal allowance, at 20% up to £50,270, 40% to £125,140 and 45% above, plus Class 4 National Insurance at 6% between £12,570 and £50,270 and 2% above. On £50,000 profit that is £7,486 income tax and £2,245.80 Class 4 NIC, leaving £40,268.20.
How it works
Profit, not turnover
Tax is charged on profit: your income minus allowable business expenses. Accurate bookkeeping is what tells you the right profit figure, which is why most self-employed people who track expenses monthly pay less than those who guess at year-end.
Income tax bands
After the personal allowance, the first £37,700 of taxable profit is taxed at 20%, the next slice up to £125,140 at 40%, and anything above at 45%. The personal allowance reduces by £1 for every £2 of income over £100,000 and is gone at £125,140.
Class 4 National Insurance
Class 4 NIC is 6% on profits between £12,570 and £50,270 and 2% above that. Class 2 is no longer compulsory, although you can pay it voluntarily to protect your State Pension record.
Rates used, 2026/27
- Personal allowance£12,570
- Basic rate20% up to £50,270
- Higher rate40% to £125,140
- Additional rate45% above £125,140
- Class 4 NIC6% then 2%
Last checked November 2026 against GOV.UK: Income Tax rates and Personal Allowances. General information, not tax advice.
A worked example
A freelance designer with £35,000 profit pays £4,486 income tax and £1,345.80 Class 4 NIC, taking home £29,168.20, an effective rate of about 16.7%.
Questions about this calculator
Does this include Scottish income tax?
No. It uses the rates for England, Wales and Northern Ireland. Scottish taxpayers pay income tax at different rates and bands set by the Scottish Parliament.
When is sole trader tax due?
Self Assessment returns and the balance of tax are normally due by 31 January after the tax year ends on 5 April, with payments on account due on 31 January and 31 July if your bill is over £1,000.
What if my income is over £50,000?
From April 2026 you must keep digital records and send quarterly updates under Making Tax Digital for Income Tax. See our MTD checker.
Your books, sorted, starting today.
Get an exact price in about a minute and pay securely online.