Sole Trader Tax Calculator – 2024/25

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 pay income tax and 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.

2024/25 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 2024/5

You pay income tax on any profits over your personal allowance (£12,570 for most people in 2024/5).

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

The 40% higher rate applies to income between £50,270 and £125,140.

The 45% additional rate applies to income over £125,140

National Insurance in 2024/5

Class 2 NICs are £3.45 per week and are no longer mandatory (since April 2024). If your profits are below the Small Profits Thresold (£6,725), then you can make voluntary contributions to ensure you have a NI credit towards your State Pension for this tax year. If you earn over £6,725, then your Class 2 contributions are considered paid for State Pension purposes.

Class 4 NICs are 6% of profits between £12,570 – £50,270, and 2% of profits above this threshold.

Further Information

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

Try our limited company tax calculator to find out your tax liability if you work via your own company.

Read more about Self Employed National Insurance on the GOV.UK site.

A note on pension contributions

Aside from any contributions made to your employees, your own pension contributions aren’t an allowable business expense.

However, they are tax-deductible, and this process takes place via self-assessment. Tax relief is available according to the tax band your income falls into.