On £100,000 profit, a sole trader takes home ££69,311/year (££5,776/month) in 2026/27, paying ££27,432 income tax and ££3,257 Class 4 NI. Total tax: ££30,689 at an effective rate of 30.69%.
| Item | Amount | Note |
|---|---|---|
| Gross profit | £100,000 | |
| Income tax | −£27,432 | Self Assessment |
| Class 4 NI | −£3,257 | 6% on £12,570–£50,270; 2% above |
| Take-home pay | £69,311/yr | £5,776/mo |
Assumes England/Wales tax rates, 2026/27 tax year, no pension contributions, no other income, no student loan. Use the full calculator to model your specific position.
| Band | Rate | Taxable | Tax |
|---|---|---|---|
| Basic rate | 20% | £37,700 | £7,540 |
| Higher rate | 40% | £49,730 | £19,892 |
Monthly tax to set aside: £2,557 — on £100,000 profit, total tax is ££30,689. Setting aside £2,557 each month avoids a large Self Assessment bill in January. Payments on account (if due) are roughly ££7,672 each.
On £100,000 profit, income tax is ££27,432 in 2026/27 under England/Wales rates. The first £12,570 (personal allowance) is tax-free; the basic rate of 20% applies up to £50,270; the higher rate of 40% applies above that. Income tax is paid via Self Assessment each January (with payments on account in January and July).
Class 4 NI on £100,000 profit is ££3,257 in 2026/27. The rate is 6% on profits between £12,570 and £50,270, and 2% on profits above £50,270. Class 4 NI is also paid via Self Assessment, not through PAYE.
After income tax (££27,432) and Class 4 NI (££3,257), a sole trader on £100,000 profit takes home ££69,311 per year — ££5,776 per month. This assumes England/Wales rates, no pension contributions and no other income.
At £100,000, a sole trader's effective tax rate is 30.69%. A limited company structure can reduce the combined tax burden, particularly above £50,000 profit, but involves accountancy costs, administrative overhead and Companies House filing obligations. The saving needs to outweigh the additional cost. Use a qualified accountant to model your specific situation before changing structure.
Adjust pension contributions, student loan plan, region and other income in the full calculator.
Open calculator with £100,000 →