Profit after tax calculator
For pricing decisions, rate negotiations and scenario planning — see how much of a given profit level you actually keep once income tax and NI are deducted.
Updated for 2026/27. Uses UK tax bands and HMRC/GOV.UK guidance. Estimates only — not tax advice.
Calculator checked against GOV.UK and HMRC rules on (how we check).
Calculate sole trader tax Read the guidesFree check · 2026/27
Turn this into a dated payment plan
See your 2026/27 bill, every payment with its date and amount, and what to set aside each month.
Your Self Assessment payment timeline
Based on your estimated bill of £8,431.80 for 2026/27, here is when HMRC expects payment — and why your first January bill can feel much bigger than the tax itself. Estimate only — your exact HMRC figures may differ.
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Modelling profit scenarios and rate negotiations
When evaluating a contract, setting rates or deciding whether to take on more work, the question is rarely 'what is my gross income?' — it is 'what do I actually keep?' This calculator is designed for that kind of scenario modelling.
Try different profit levels using the chips below the profit field. Compare the net result at £40,000 vs £50,000 to understand how additional work translates into actual take-home after progressive tax bands.
- Use it to evaluate rate increases: does £5 more per hour translate to meaningful extra take-home?
- Compare sole trader take-home at different profit levels before deciding whether to incorporate.
- Factor in pension: a £5,000 contribution typically saves more than £1,000 in income tax at higher profit levels.
Rates checked against Budget 2026 Annex A on 30 October 2026. Written and reviewed by James Whitfield against current GOV.UK and HMRC guidance. Estimates for planning only — not tax, accounting or financial advice.
What an extra pound of profit is worth
Your overall tax rate, the share of all your profit that goes in tax, is useful for budgeting, but it is the wrong number for decisions. When you weigh up a new contract, a price rise or an extra Saturday's work, what matters is the tax on the extra profit, which depends on which band that profit lands in.
For 2026/27 a sole trader in England, Wales or Northern Ireland keeps 74p of each extra pound between £12,570 and £50,270 (20% Income Tax plus 6% Class 4), 58p from there to £100,000 (40% plus 2%), and less than 40p between £100,000 and £125,140, where the Personal Allowance is withdrawn at £1 for every £2 of income. Above £125,140 it is 53p (45% plus 2%). A personal pension contribution can bring income back below £100,000 for tax purposes; the calculator shows the contribution as money paid out and does not add that relief.
What an extra £5,000 of profit adds after tax
| Profit rises from | Extra tax and NI | You keep | Per £1 |
|---|---|---|---|
| £20,000 to £25,000 | £1,300.00 | £3,700.00 | 74p |
| £45,000 to £50,000 | £1,300.00 | £3,700.00 | 74p |
| £60,000 to £65,000 | £2,100.00 | £2,900.00 | 58p |
| £97,500 to £102,500 | £2,600.00 | £2,400.00 | 48p |
| £105,000 to £110,000 | £3,100.00 | £1,900.00 | 38p |
| £125,000 to £130,000 | £2,371.00 | £2,629.00 | 53p |
2026/27, England, Wales or Northern Ireland, no other income, student loan or pension.
A price rise, worked through: on turnover of £48,000 with £8,000 of costs, profit is £40,000 and you keep £32,868. Put prices up 10% and keep the same costs, and profit rises by £4,800 to £44,800; you keep £36,420, so £3,552.00 more a year after tax, if you keep the same clients.
The same logic works for costs. An allowable £1,000 business cost at £25,000 of profit cuts your bill by £260, so it really costs you £740. At £60,000 it cuts the bill by £420 and costs £580. That is a reason to time a genuine purchase, never to buy something you do not need.
Every figure here comes from the calculator above, using 2026/27 rates. Estimates for planning only, not tax advice.
Pitfalls when modelling profit
- Using the average rate to price extra work. At £60,000 the average is under 30%, but the next £1,000 is taxed at 42%.
- Missing the £100,000 to £125,140 band. It catches people with a good year, and the extra tax is only visible if you model the higher profit.
- Leaving out a student loan. Plans 1, 2, 4 and 5 add 9% on income above their thresholds, so the rate on extra profit is 9 points higher.
- Comparing structures on one figure. Whether a limited company keeps more depends on how much profit you take out, so model the profit you would actually draw.
Profit scenario modelling — questions
How does increasing profit affect take-home at higher income levels?
Is this useful for rate negotiations?
How does profit after tax compare between sole trader and limited company?
Where to go next
Official sources for this page
Calculator and worked examples checked against GOV.UK and HMRC rules on 3 November 2026.
Thinking of going limited? Compare first: with 2026/27 rates, a sole trader who takes all the profit out usually keeps more. If you already run a company, the Director's Pay & Tax Pack (£4.99) covers salary versus dividends, the director's loan account and year-end planning for 2026/27.