SoleTraderTaxCalculator
Updated for 2026/27

Sole trader tax calculator

Enter your estimated taxable profit to get a clean breakdown of income tax, National Insurance, take-home and monthly set-aside. Based on HMRC 2026/27 rates.

Updated for 2026/27. Uses UK tax bands and HMRC/GOV.UK guidance. Estimates only — not tax advice.

Calculate sole trader tax Read the guides
Income taxClass 4 NITake-homeMonthly reserve
2026/27 tax year England, Scotland, Wales & NI Student loan support Practical reserve figure

Sole trader tax calculator

Income tax and Class 4 NI from profit — 2026/27

Adjust inputs below — results update instantly.

Tax year 2026/27
How do you earn?

Enter profit after allowable business expenses — not total turnover.

The annual profit used in calculations will be monthly profit × 12.

£
£
Expenses exceed estimated turnover — check your inputs.
£
£
Expenses exceed estimated turnover — check your inputs.
£
£
£18,068take-home / year£1,506/mo
Monthly net
£1,506
Tax set-aside
£161
Quarterly reserve
£483
Take-home£18,068
Income Tax£1,486
National Insurance£446
Student loan£0
Pension£0
Show detailed breakdown ▼
Income tax£1,486.00
Class 4 National Insurance£445.80
Student loan£0.00
Pension contribution£0.00
Take-home after tax£18,068.20
Monthly tax set-aside£160.98
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Self Assessment soon? Sole Trader Pack — £3.99 →
HMRC 2026/27 · Methodology
2026/27 edition
Sole Trader Tax Survival Pack

Self Assessment checklist, expense tracker, payments on account calendar and more — all in one practical PDF. Updated for 2026/27.

Instant download No subscription Full refund if not satisfied
Get the pack£3.99 one-off
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Estimate your Self Assessment tax bill from sole trader profit and plan for January and July payment deadlines.
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Calculate how much to set aside each month from sole trader profit to cover income tax and National Insurance for 2026/27.
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Estimate how much of your sole trader profit remains after income tax, NI and optional deductions for 2026/27.
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Estimate Class 4 National Insurance contributions from annual self-employed profit for 2026/27.
Sole trader expenses: a practical guide
How allowable business expenses reduce taxable profit, what counts, what does not, and why using the right profit figure matters for every tax estimate.
Making Tax Digital for sole traders
What Making Tax Digital for Income Tax means in practice, who it affects, income thresholds, digital record requirements and how to prepare.
Payments on account: what sole traders need to know
How payments on account work, when they apply, why they catch people out and how to plan your monthly set-aside to cover them.
Self Assessment deadlines for sole traders
The key filing and payment deadlines sole traders must know, what late filing costs, and how to use your tax estimate to prepare in advance.
AfterTaxSalary.co.uk
Use the PAYE salary tool if you want an employed take-home comparison beside your self-employed result.
EmployerCalculator.co.uk
Useful when a sole trader contract is being weighed against hiring someone through payroll.
UKBenefitsCalculator.co.uk
Use this where self-employed income affects benefits planning or household budgeting.
HomeBuyingCosts.co.uk
Useful once you want to turn stable post-tax profit into a realistic home-buying budget.
Making Tax Digital

MTD for Income Tax

From 6 April 2026, Making Tax Digital for Income Tax is mandatory for sole traders and landlords with qualifying income over £50,000. That means keeping digital records and sending HMRC a short update every quarter through recognised software, instead of one Self Assessment at year end. The threshold drops to £30,000 in April 2027 and £20,000 in April 2028, and HMRC reckons around 860,000 people are in the first wave.

HMRC-recognised software includes FreeAgent, Xero, QuickBooks, Sage and Zoho Books. FreeAgent is free for Mettle and NatWest business banking customers. There are no penalties for late quarterly updates during 2026/27.

Getting set up

Business bank accounts

Keeping a separate account for business income and expenses makes Self Assessment and record-keeping considerably easier.

Starling Business
Permanently free, no monthly fee. A fully licensed UK bank - deposits up to £85,000 are FSCS protected. Accepts sole traders and limited companies. 0.7% on Post Office cash deposits.
Open an account →
Tide
Free to open. Built-in invoicing and expense tracking. 20p per outgoing transfer on the free tier. Accepts businesses with no trading history. Funds are safeguarded as e-money, not FSCS protected.
Open an account →
Mettle by NatWest
Free for sole traders and single-director limited companies. Includes FreeAgent bookkeeping at no extra cost - useful for MTD record-keeping. Funds safeguarded as e-money, not FSCS protected. No cash deposits.
Open an account →