Estimate your take-home pay for the 2025/26 tax year with our user-friendly calculator, designed specifically for sole traders and self-employed professionals in the UK.
Sole Trader Tax Calculator
Calculate your tax liability as a self‐employed individual.
Sole Trader Tax Calculation ()
| Description | Amount (£) |
|---|---|
| Annual Revenue | |
| Annual Expenses | |
| Calculated Profit | |
| Personal Allowance | |
| Taxable Income | |
| Income Tax Liability | |
| Class 2 NIC | |
| Class 4 NIC | |
| Total NIC (Class 2 + Class 4) |
2025/26 Tax Rates and Thresholds
Income Tax
| Tax Band | Taxable Income Range | Tax Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Basic Rate | £12,571 – £50,270 | 20% |
| Higher Rate | £50,271 – £125,140 | 40% |
| Additional Rate | Over £125,140 | 45% |
Note: The Personal Allowance reduces by £1 for every £2 earned over £100,000, phasing out completely at £125,140.
National Insurance Contributions
- Class 4 NICs:
- 6% on profits between £12,570 and £50,270
- 2% on profits over £50,270
- Class 2 NICs:
- Voluntary contributions of £3.50 per week are available if your profits are below the Small Profits Threshold of £6,845, allowing you to maintain your National Insurance record.
Assumptions
- The calculator is intended for sole traders and members of partnerships.
- It assumes eligibility for the full Personal Allowance (£12,570).
- Only income from self-employment is considered; other income sources are excluded.
- The High Income Child Benefit Charge is not accounted for; if applicable, consult HMRC guidelines.
Additional Information
- Class 2 NICs are no longer mandatory as of April 2024. However, voluntary contributions can help maintain your entitlement to certain state benefits.
- Ensure accurate record-keeping of all income and expenses to facilitate correct tax calculations.
- Consult a tax professional for personalized advice, especially if you have multiple income streams or complex financial situations.