Use this sole trader tax calculator to work out how much tax to pay on profits for the 2024/5 tax year.
How to use the calculator
Fill in the yellow boxes to calculate your post-tax profits, after deductions for expenses, income tax, and National Insurance Contributions.
To keep this tool as simple as possible, we make several assumptions. Please scroll down for more details.
2024/25 Sole Trader Tax Calculator
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Assumptions used in this calculator
- This calculator is aimed at self-employed people. IT contractors, however, rarely work as sole traders, for several reasons. You can find out more here.
- Read this article to view the current Class 2 and Class 4 National Insurance rates.
- Since April 2024, Class 2 NICs are no longer mandatory. However, if your annual profits are below the £6,725 small profits threshold, you can still make payments of £3.45 a week. This ensures that you have a credit towards the State Pension for the 2024/5 tax year.
- Personal pension contributions for a sole trader are paid from post-tax earnings. Tax relief is available and then claimed via the self assessment process.
- All calculations gave been verified by our accountant.
- You can work out your sole trader taxes using the official GOV.UK self employed calculator. The results match ours of course!
- Please talk to an accountant if you have any questions related to your own tax affairs.