Sole Trader Guide

Sources

Every rate and threshold on this site is taken from official HMRC and GOV.UK guidance. This page lists the primary sources so you can verify the current position independently. Last reviewed: July 2026.

Updated 2026/27 · SoleTraderTaxCalculator.co.uk · Editorial standards · Methodology

Contents
  1. 1. Income tax rates and allowances
  2. 2. Scottish income tax
  3. 3. National Insurance for the self-employed
  4. 4. Self Assessment and payments on account
  5. 5. Allowable expenses, trading allowance and MTD
  6. 6. Student loan repayments
  7. 7. How we use these sources

Income tax rates and allowances

Income tax rates and bands, and the Personal Allowance and its taper above £100,000, are taken from GOV.UK: gov.uk/income-tax-rates and gov.uk/income-tax-rates/income-over-100000.

For 2026/27 we apply a Personal Allowance of £12,570, basic rate 20% to £50,270, higher rate 40% to £125,140, and additional rate 45% above £125,140.

Scottish income tax

Scottish income tax bands, set by the Scottish Government, are taken from GOV.UK: gov.uk/scottish-income-tax. These apply to non-savings, non-dividend income for Scottish taxpayers, while the Personal Allowance remains UK-wide.

National Insurance for the self-employed

Class 2 and Class 4 National Insurance rates and thresholds are taken from GOV.UK: gov.uk/self-employed-national-insurance-rates. For 2026/27 we apply Class 4 at 6% between £12,570 and £50,270 and 2% above £50,270, with Class 2 relevant for those below the small-profits threshold or paying voluntarily to protect their contribution record.

Self Assessment and payments on account

Self Assessment deadlines, penalties and the payments-on-account system are taken from GOV.UK: gov.uk/self-assessment-tax-returns, gov.uk/pay-self-assessment-tax-bill and gov.uk/understand-self-assessment-bill/payments-on-account.

Allowable expenses, trading allowance and MTD

Allowable expenses and the £1,000 trading allowance are taken from GOV.UK: gov.uk/expenses-if-youre-self-employed and gov.uk/tax-free-allowances-on-property-and-trading-income. Making Tax Digital for Income Tax guidance is taken from gov.uk/guidance/using-making-tax-digital-for-income-tax.

Student loan repayments

Student and postgraduate loan repayment thresholds and rates are taken from GOV.UK: gov.uk/repaying-your-student-loan. These are applied through Self Assessment for self-employed borrowers.

How we use these sources

We review these sources at each UK Budget and at the start of each tax year, and update affected pages when official guidance changes. If you believe a figure is out of date, please contact us with a link to the relevant GOV.UK page so we can verify and correct it.

Use the calculator

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

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