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Sole trader tax calculator

Estimate your income tax and National Insurance for the 2025/26 tax year. Just enter your income and expenses.

Tax calculator

Enter your expected annual figures to get an instant tax estimate

Your total income before expenses

Equipment, travel, software, office costs, etc.

This is an estimate based on 2025/26 tax rates. Your actual tax liability may differ.

Enter your income and expenses to see your tax breakdown

How sole trader tax works

20%

Basic rate

On taxable profit between £12,571 and £50,270 after your personal allowance.

40%

Higher rate

On taxable profit between £50,271 and £125,140.

6%

Class 4 NI

National Insurance on profits between £12,571 and £50,270, 2% above that.

What is taxable profit?

Taxable profit is your gross income minus allowable business expenses. This is the figure HMRC uses to calculate your income tax and National Insurance. You get a tax-free personal allowance of £12,570, which reduces if your income exceeds £100,000.