For sole traders. Enter your annual profit (your income after allowable expenses) and see your take-home after Income Tax and Class 4 National Insurance, how much to set aside for the bill, and what payments on account will mean. 2026/27 rates.
Class 2 National Insurance is no longer charged if your profit is above the Small Profits Threshold (£7,105 for 2026/27) — you keep your State Pension qualifying year automatically; below that you can pay it voluntarily at £3.65 a week. If your turnover is under £1,000 you may not need to file at all, or can use the £1,000 trading allowance instead of expenses. Estimates for a sole trader, not financial advice — check figures against GOV.UK.
On your profit (income after allowable expenses) you pay the same Income Tax as an employee — nothing up to the £12,570 Personal Allowance, then 20%, 40% and 45% across the bands — plus Class 4 National Insurance of 6% on profits between £12,570 and £50,270, and 2% above. There is no employer National Insurance on your own profits.
For most people, no. Since April 2024 Class 2 is no longer charged if your profits are above the Small Profits Threshold, which is £7,105 for 2026/27 — you get the State Pension qualifying year automatically. Below that you can pay it voluntarily at £3.65 a week to protect your record.
A common rule of thumb is 25 to 30% of your profit, but the calculator shows the exact percentage for your figures. Self-employed tax is not taken at source, so saving it as you earn avoids a shock at the 31 January deadline.
If your Income Tax and Class 4 bill is over £1,000, HMRC asks you to pre-pay next year in two instalments, due 31 January and 31 July, each half of this year bill. In your first year this means paying around 150% of the bill in one January, which catches many new sole traders out.
These results are estimates for general information only and are not financial advice. Check every figure yourself and seek appropriate advice from a qualified professional before making any decision. Read the full disclaimer.