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Updated for 2026/27 · HMRC verified

Sole Trader Tax Calculator UK

Calculate your self-employed profits and estimate exactly how much tax you pay under 2026/27 HMRC rates.

Income Tax & NI VAT (add / remove) Corporation Tax MTD Readiness Scotland rates
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Tax calculators

2026/27 rates
Sole Trader Tax Most used

Income tax, Class 4 NI, and take-home pay — with Scotland toggle.

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Ltd vs Sole Trader

Side-by-side tax comparison including marginal relief and dividends.

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Salary vs Dividend

Optimal director pay split to minimise your personal tax liability.

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VAT Calculator

Add or remove 20%, 5%, or 0% VAT from any amount instantly.

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Corporation Tax

Company tax at 19% to 25% including the marginal relief formula.

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MTD Readiness April 2026

Check if and when you must comply with Making Tax Digital.

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£12,570

Personal Allowance

2026/27

6%

Class 4 NI rate

on profits £12,570 to £50,270

£90,000

VAT registration threshold

12-month rolling

Who these tools are for

Built for UK freelancers, sole traders, limited company directors, and landlords — anyone who manages their own tax. Every calculator runs entirely in your browser. We never see your numbers.

Common questions

How much tax does a sole trader pay in the UK?
A sole trader pays Income Tax on taxable profits above the £12,570 Personal Allowance — 20% basic rate, 40% higher rate, 45% additional rate (Scottish rates differ). On top of that, Class 4 National Insurance is 6% on profits from £12,570 to £50,270, then 2% above.
Is Class 2 National Insurance still payable in 2026?
No. Mandatory Class 2 NI was abolished from April 2024. If your profits exceed the Small Profits Threshold (£7,105 for 2026/27), your NI record is credited automatically. Below that, voluntary Class 2 at £3.65/week protects your State Pension.
When is the Self Assessment deadline?
Paper returns are due 31 October. Online returns and tax payments (including the first Payment on Account) are due 31 January. For the 2026/27 tax year, the online deadline is 31 January 2028.
Should I form a limited company?
Incorporation typically saves tax once profits exceed £40,000"“£50,000. The advantage has narrowed — corporation tax is now 25% for profits over £250,000, and dividend tax rose by 2% in 2026. Factor in accountancy fees before deciding.
What is Making Tax Digital for Income Tax?
MTD for ITSA replaces the annual Self Assessment with four quarterly digital submissions per year. It's mandatory from April 2026 for income over £50,000, April 2027 over £30,000, and April 2028 over £20,000.