Sole Trader Tax Calculator

Use our Excel calculator to work out how much tax you will have to pay as a sole trader.

If you’re self-employed, you need to work out your taxable profits (turnover minus expenses) each year, via the Self Assessment process.

You are liable to pay income tax, Class 2 and 4 National Insurance Contributions on any profits you make (scroll down for more details).

Simply enter your turnover and expenses into the input fields below to calculate your liability.

2021/22 Sole Trader Tax Calculator

How are sole traders taxed?

If you are self-employed, your profits are subject to income tax and National Insurance Contributions.

Income Tax in 2021/2

You will pay income tax on any profits in excess of your personal allowance (£12,570 for most people in 2021/2).

The 20% basic rate applies to income between £12,570 and £50,270.

The 40% higher rate applies to income between £50,270 and £150,000.

The 45% additional rate applies to income over £150,000.

National Insurance in 2021/2

Class 2 NICs are £3.05 per week (if your business profits are above £6,515).

Class 4 NICs are applied at 9% on profits between £9,568 – £50,270, and 2% on profits above this threshold.

Read our concise guide to sole trader tax for full details.

Last updated: 20th April, 2021

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