Standard Personal Allowance, England/Wales/Northern Ireland Income Tax bands and 2026/27 Class 4 National Insurance are included. VAT, payments on account, student loans, pension relief and other income are excluded from this first version.
SOLE TRADER · 2026/27
Self-employed tax calculator
Estimated take-home profit
£42,051/year
- Taxable profit
- £53,000
- Income Tax
- £8,632
- Class 4 NI
- £2,317
- Suggested tax set-aside
- 20.7%
Estimate Income Tax and Class 4 National Insurance from turnover and allowable business expenses. It is the fast check most sole traders want before they think about VAT, payments on account or whether the business is actually producing enough cash to live on.
Standard Personal Allowance, England/Wales/Northern Ireland Income Tax bands and 2026/27 Class 4 National Insurance are included. VAT, payments on account, student loans, pension relief and other income are excluded from this first version.
A trader with seasonal income and irregular costs usually cares less about the annual gross figure than the cash left after expenses, NI and tax. If turnover rises but expenses also rise, the profit line can stay flat even though the business feels busier.
- VAT registration and VAT accounting are separate from this first-pass sole trader estimate.
- This is not the same as a Self Assessment return or a limited-company tax calculation.
SOURCES & REVIEW
Checked against official guidance
Last reviewed 1 September 2026 · Rule version GB-2026.27.1
Daily/weekly source monitoring. If a source changes, the affected rule set is reviewed before publication.
All source links are kept visible so you can verify the figures used on this page.
Source line: Sole trader tax is checked against the same UK income-tax and Class 4 NI rule set used by the salary calculators.
GOV.UK: Self Assessment ↗GOV.UK: Class 4 National Insurance ↗Sources, methodology and update policy →Report an issue or correction →WHY RESULTS DIFFER
Why two users can see different results
Why the result can differ
Different tax codes, payroll periods, Scottish bands, pension methods or lender assumptions can change the outcome.
One-off bonuses, pay frequency, overpayments, allowances and reliefs can move the result away from a simple annual estimate.
Where a rule depends on eligibility or legal status, this page shows an estimate and links to official guidance.
This section is intentionally repeated on key tools so the explanation stays near the result instead of being hidden in a separate policy page.
COMMON QUESTIONS
Frequently asked questions
Does this include VAT?
No. VAT registration and VAT accounting are separate from this first-pass sole trader estimate.
Is this the same as Self Assessment?
No. Self Assessment is the annual filing process; this page is a planning estimate.
Should I use this if I am a limited company?
No. A limited company usually needs corporation-tax and dividend calculations instead.
Does this include Class 2 NI?
The page focuses on the main income-tax and Class 4 NI picture; separate rules can still apply to your exact case.
Can business expenses change the answer a lot?
Yes. Allowable expenses reduce taxable profit, so even small changes can move the final estimate.
Should I use turnover or profit?
Use profit after allowable expenses. Turnover alone can seriously overstate what the business really keeps.