Sole trader tax calculator 2026/27
Enter your expected profit for the tax year and see income tax, Class 4 National Insurance and what you keep.
Class 2 NI is no longer compulsory. If your profit is below the small profits threshold you can pay it voluntarily to protect your State Pension record.
| Profit (turnover − expenses) | |
| Income tax | |
| Class 4 National Insurance | |
| Total to HMRC | |
| Take-home for the year | |
| Take-home per month | |
| Effective rate on profit |
Read: what can I claim as self-employed? →
Assumes a standard personal allowance (tapered above £100,000), no student loan, no pension contributions, and England/Wales/NI bands. Scottish income tax bands differ. Not tax advice.
Frequently asked questions
How much tax does a sole trader pay in 2026/27?
Nothing on the first £12,570 of profit (personal allowance), then 20% income tax up to £50,270, 40% up to £125,140 and 45% above. Class 4 National Insurance is 6% on profit between £12,570 and £50,270 and 2% above that. Class 2 is no longer compulsory.
What are payments on account?
If your Self Assessment bill is over £1,000, HMRC asks for two advance payments towards next year's bill — half on 31 January and half on 31 July — on top of the balance for the year just ended. The calculator shows the amounts.
Do I need to register for Making Tax Digital?
From April 2026, sole traders and landlords with combined income over £50,000 must keep digital records and send quarterly updates; the threshold drops to £30,000 in April 2027 and £20,000 in April 2028.
Is this calculator accurate for Scotland?
No. Scottish income tax bands are different; National Insurance is the same across the UK.