Free Sole Trader Take-Home Calculator
Estimate sole-trader take-home pay after Income Tax and Class 4 National Insurance for the UK (England/Wales).
Sole Trader Take-Home Calculator results
Fill in the details and select Calculate to see your figures.
Enter annual turnover and expenses to see taxable profit, Income Tax, Class 4 NIC and estimated take-home for 2026/27. England/Wales bands; Scotland differs.
How to use the Sole Trader Take-Home Calculator
- Enter your expected annual turnover (self-employed income before expenses).
- Subtract allowable business expenses to get taxable profit.
- Optionally select a student loan plan if you repay one.
- Read take-home after Income Tax and Class 4 NIC (Class 2 is no longer mandatory).
- Use this for planning only: Self Assessment, payments on account and Scotland bands may differ.
How the Sole Trader Take-Home Calculator works
Sole-trader take-home is profit after Income Tax and Class 4 National Insurance (and student loan if it applies).
- Turnover £45,000 − expenses £5,000 = £40,000 profit.
- Personal Allowance £12,570 → taxable £27,430 at 20% = £5,486 Income Tax.
- Class 4: 6% × (£40,000 − £12,570) = £1,645.80.
- Take-home ≈ £40,000 − £5,486 − £1,646 = £32,868 (~£2,739/month).
Estimate for a sole trader in England/Wales, 2026/27. Excludes student loan unless selected, payments on account, and Scotland's different income-tax bands.
Typical UK benchmarks
- Personal Allowance
- £12,570 tax-free before Income Tax applies (GOV.UK, Income Tax rates and Personal Allowances, 2026/27)
- Basic-rate band to
- Basic rate 20% on income up to £50,270 total (£37,700 taxable after the standard Personal Allowance); higher rate 40% up to £125,140; additional rate 45% above (GOV.UK, Income Tax rates and Personal Allowances, 2026/27)
- Class 4 main rate
- Class 4 National Insurance: 6% on profits between £12,570 and £50,270, 2% above £50,270 (GOV.UK, National Insurance rates for the self-employed, 2026/27)
See it in your business.
Frequently asked questions
How much tax does a sole trader pay in the UK?
On profits above the Personal Allowance (£12,570), Income Tax is 20% basic, 40% higher and 45% additional for 2026/27 (England/Wales) (GOV.UK, Income Tax rates and Personal Allowances). You also pay Class 4 National Insurance at 6% between £12,570 and £50,270 and 2% above (GOV.UK, National Insurance rates for the self-employed). Class 2 is no longer a mandatory charge.
What is the difference between turnover and profit?
Turnover is everything you invoice. Taxable profit is turnover minus allowable business expenses. Tax and NIC are calculated on profit, not turnover.
Do sole traders still pay Class 2 National Insurance?
Class 2 is no longer a separate mandatory bill for most people. If profits are above the small-profits threshold, Class 2 is treated as paid for your National Insurance record. Class 4 on profits is what you actually calculate and pay.
Does this calculator work for Scotland?
No: it uses England/Wales Income Tax bands. Scotland has different starter/basic/intermediate/higher bands. NIC rules are UK-wide, but the tax half of the result will be wrong for Scottish taxpayers.
Are payments on account included?
No. Self Assessment often requires payments on account toward next year's bill. This tool shows a simple annual tax + NIC estimate for planning your day rate and pricing, not a full Self Assessment forecast.
