Free Sole Trader Take-Home Calculator
Estimate sole-trader take-home pay after Income Tax and Class 4 National Insurance for the UK (England/Wales).
Enter annual turnover and expenses to see taxable profit, Income Tax, Class 4 NIC and estimated take-home for 2026/27. England/Wales bands; Scotland differs. Not tax advice: confirm with HMRC or an accountant.
Results
Fill in the details and select Calculate to see your figures.
Win more of the jobs you quote.
Tradehand gives your trade business a whole office team without hiring anyone: it answers every enquiry, sends your quotes the same day and chases them until they land. There is no monthly fee. Tradehand takes 5% of an invoice, and only when the customer actually pays you, so a quiet month costs you nothing.
Get a free demoHow to use the Sole Trader Take-Home Calculator
- 1Enter your expected annual turnover (self-employed income before expenses).
- 2Subtract allowable business expenses to get taxable profit.
- 3Optionally select a student loan plan if you repay one.
- 4Read take-home after Income Tax and Class 4 NIC (Class 2 is no longer mandatory).
- 5Use this for planning only: Self Assessment, payments on account and Scotland bands may differ.
How to work it out yourself
Sole-trader take-home is profit after Income Tax and Class 4 National Insurance (and student loan if it applies).
- Turnover £45,000 − expenses £5,000 = £40,000 profit.
- Personal Allowance £12,570 → taxable £27,430 at 20% = £5,486 Income Tax.
- Class 4: 6% × (£40,000 − £12,570) = £1,645.80.
- Take-home ≈ £40,000 − £5,486 − £1,646 = £32,868 (~£2,739/month).
Estimate for a sole trader in England/Wales, 2026/27. Excludes student loan unless selected, payments on account, and Scotland's different income-tax bands. Not tax advice: confirm with HMRC or an accountant.
Typical UK benchmarks
| Personal Allowance | £12,570 tax-free before Income Tax applies (GOV.UK, Income Tax rates and Personal Allowances, 2026/27) |
| Basic-rate band to | Basic rate 20% on income up to £50,270 total (£37,700 taxable after the standard Personal Allowance); higher rate 40% up to £125,140; additional rate 45% above (GOV.UK, Income Tax rates and Personal Allowances, 2026/27) |
| Class 4 main rate | Class 4 National Insurance: 6% on profits between £12,570 and £50,270, 2% above £50,270 (GOV.UK, National Insurance rates for the self-employed, 2026/27) |
Disclaimer
This tool gives an estimate for general guidance only, based on typical UK figures and the details you enter. It is not a formal quote, survey, or professional advice. Always confirm with a qualified tradesperson before relying on any figure, as regional prices, site conditions, and current standards vary.
You do the job, Tradehand handles everything around it.
Tradehand sends the quotes, chases the invoices, books the work and keeps your customers updated, for no monthly fee and 5% of an invoice only once the customer has paid. One office hire costs about £25,000 a year, whether the invoices land or not.
Source: Office manager salary, National Careers Service
Get a free demoFrequently asked questions
How much tax does a sole trader pay in the UK?
On profits above the Personal Allowance (£12,570), Income Tax is 20% basic, 40% higher and 45% additional for 2026/27 (England/Wales) (GOV.UK, Income Tax rates and Personal Allowances). You also pay Class 4 National Insurance at 6% between £12,570 and £50,270 and 2% above (GOV.UK, National Insurance rates for the self-employed). Class 2 is no longer a mandatory charge.
What is the difference between turnover and profit?
Turnover is everything you invoice. Taxable profit is turnover minus allowable business expenses. Tax and NIC are calculated on profit, not turnover.
Do sole traders still pay Class 2 National Insurance?
Class 2 is no longer a separate mandatory bill for most people. If profits are above the small-profits threshold, Class 2 is treated as paid for your National Insurance record. Class 4 on profits is what you actually calculate and pay.
Does this calculator work for Scotland?
No: it uses England/Wales Income Tax bands. Scotland has different starter/basic/intermediate/higher bands. NIC rules are UK-wide, but the tax half of the result will be wrong for Scottish taxpayers.
Are payments on account included?
No. Self Assessment often requires payments on account toward next year's bill. This tool shows a simple annual tax + NIC estimate for planning your day rate and pricing, not a full Self Assessment forecast.
